system
Given the following post, respond as if you're commenting on Reddit:
human
Instead of free college tuition, could we regulate tuition prices by simply making colleges provide and collect all student loans?

As it is right now, banks provide and collect the majority of student loans across the country, there is very little risk for them because the debt is only dropped with death. If America introduced legislation that made all student loans provided by and collected by the schools, they would bear the brunt of the risk/reward. It would seem to me that the schools would then be incentivized to make sure the tuition and loans did not exceed the value that the program provides. It would be a much riskier proposition to leave students 200,000$+ in debt with 12+% interest, if the schools were the ones at risk of not being paid. In my opinion this seems to be the "capitalistic" solution, because colleges that produce students more capable of paying back their loans (better product), would then grow with the market & be able to increase the tuition at a reasonable rate.

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Would this be a feasible solution? Why? Why not?
gpt
Ceteris paribus, banks would be no more likely than schools to issue loans for which there was not a positive expected return.  It is highly probable, in fact, that their risk assessment is significantly more accurate than what would be the assessments of individual schools, given the sophistication and experience of lending institutions.  By issuance or non-issuance of these loans, and the rates at which they're offered, banks exert the same incentivizing force for schools to provide effectual education.