First of all the CAA has nothing to do with the student loan scheme.
Not directly, correct. But when the number of applications for flight crew documents plummet, so will their revenue stream. Same for ASL. Imagine how much a CBT exam will cost when there's a) less people sitting exams and b) actually smarter people sitting and passing first time, rather than multi-sit dreamers....
There will be flow on effects for sure, including initial resistance from providers who have printed money from the current scheme and wouldn't want to see their bottomline's suffer.
S2K