These loans are unsecured/unbacked credit. Anyone who really understands money creation knows that this kind of thing is an inflationary pressure. It's collectively eating away at our money's purchasing power. We should all be mad about it.
If someone who wanted to borrow the money had to stump up some collateral of some kind to take the loan, it would significantly curtail the amount of credit available. Of course, it's not PC, because only the "rich kids" would get the opportunity.
...except it's the same thing because the "rich kids" aren't being turned into perpetual debt slaves in the same way the naive "poor, underprivileged" kids are.
Anyway, I'm sure we can get the guvmint to fix it. They've done such a stellar job on everything else...