We need to make MOOCs the default choice for a college education. Traditional university is a minefield of money sucking scams, from book costs to extra fees to constant tuition inflation.
The reason for all the school debt is not the loan environment. It's the cost of schools.
There is an argument that the prices charged by the schools area result of the loan environment (both a market-based argument and a political argument that loans as the main affordability tool have displaced state subsidies; the former reduces the up-front cost but only by deferring it, the latter actually reduced the total cost to students.)