The students interest is getting an education, converting that education into employment, and not being indebted. The schools interest is revenue.
The student would be best off with a free tax funded education and no debt, the school is best off with guaranteed federal loans allowing them to charge imaginary tuition rates no one can normally afford but for guaranteed student loans.
Where is the alignment of interests come from with private capital in exchange for future earnings? Students are left indebted (maybe not in debt but indebted) and schools face the reality the private market isn’t willing to pay runaway tuition costs like guaranteed federal loans because private market knows it’s a bad investment (as evidenced by the current amount of outstanding student loans and default rates, nearly 1million defaults a year). Next thing we know the private investors will begin negotiating tuitions on behalf their investments and leaving non- capital backed students footing the bill for the difference (kind of like our messed up healthcare system).