It won't be the end of Oxford, Cabair, FTE, etc. but there could be a slow down. Read back up the thread and you'll see it is Modular loans that have been stopped by HSBC. The property boom of the last ten or more years means there are a large number of people who can suffer a 10-20% drop in market value and still have more than enough equity to secure a £50K loan. We are not anywhere near a 10% drop yet. Only a default rate will stop the banks from doing flight training loans and I'm willing to bet most parents who are willing to offer security will also assist with repayments if jobs are not to be had. If you think about what their other option is, then of course they'll assist with the payments.
Slag them all you want, but it is their money and their decision and there are plenty of parents willing to do it. Despite what Dartagnan says, it is the parents gambling their house, not the students. Nobody holds a gun to their head and makes them sign the security and guarantee papers.