are you saying that because we know the risks of up-front payments, nothing should be done to protect those who don't?
I would hope that even ab-initio students would put in some proper research before handing over such a large sum of cash. Even 5 mins spent on Pprune would give at least 10 threads with lots of comments in capitals about not paying up front for training.
On the other hand, it is a calculated risk. If I can get x amount of discount, but I risk losing everything, is it worth it? During my PPL I paid in chunks of £1000. At the time, I felt this was a worthwile risk since it meant every 10 hours, I got one free. The company is still going now, and I never lost any money so the risk paid off. Unfortunately for anyone involved with Cabair it has not, and I'm sure the losses will amount to a lot more than £1000 per person.
During my CPL/IR I simply paid as I flew, settling up every day. No discounts were offered for up front payment.