V2, I think you're wrong. The dream is sold by CTC stating that a job is all but guaranteed on completion of the TR (albeit a short term contract). Without this, as you stated: "2 to 3 years trying to dodge impossible debt repayments" would mean these young guys couldn't possibly afford the repayments. They would even struggle to get the loan without the guarantee of work! Thus stopping them in their tracks or stopping them from even beginning the journey. There'll be the odd millionaire's offspring who won't be daunted.
Then, as in the US now, recruitment of pilots with 1500+ hours would begin in earnest before the ruling kicks in and as the supply dries up the T&Cs increase as will the salaries. Eventually, we would be back to a position where sponsorship and TRs are provided by airlines again. Military pilots would have the opportunity to continue their aviation careers and those in the desert could come home.