It hasn't been so long ago that I was a poor college student with bad credit. But then, I was making minimum wage and credit was how I made it through school.
Now I am continually flabbergasted by what people are willing to loan me. But considering my income, it really isn't all that amazing. Creditors are, in my experience, within the bounds of reason even if they aren't always conservative. Good credit is a two edged sword. It opens a lot of doors, but you have to judiciously pick which ones to go through. I can't fault a creditor for making the assumption that you won't go hog wild into debt.
A lot of these folks could make ends meet, except for the beer and cigarettes that are more important than the house payment.
I can fault him far enough to make him eat the consequences of his bad loans, rather than innovate a new set of laws for his profit.
Leave the laws as they are. If creditors are losing money, let them be more careful how they lend it.
At least, on college registration days, there are no liquor stores and cigarette retailers trying to get the students hooked before they get back to the dorm room.