If they don't suffer the consequences of buying a useless degree, why wouldn't they keep doing it?
Why shouldn't the lender also assume part of this risk?
Why is their recoupment guaranteed (student loans can't be dissolved in bankruptcy)?
Why are they always likely to be bailed out (prove me wrong by showing a student loan lender that went into bankruptcy)?
Lenders need to do more due diligence and stop lending to students that are more likely to have problems with payback. The entire liability should not be assumed by the borrowers and co-signers.