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That has long been the romantic ideal, but it no longer matches the reality in a hypercompetitive, filter-laden job market and economy:

Something must be missing from the US formulation of "better democracy through education."

We spend a huge sum of money on "education" in the US, but the two-party, democratic government we have obtained for ourselves has left a huge fraction of the people dissatisfied and impoverished.

If that were the case, why can't you get federal aid as a non-degree seeking student? Do I need credentials to contribute to a better democracy?

I can only imagine that limiting loans and aid to the pursuit of an accredited degree makes the difference between financing a lifestyle and financing something that is guaranteed worthwhile (if we believe accreditation).