If your intent is to end student loans, this will do it.
Not necessarily.
Student loans are currently dischargeable in bankruptcy. Not easily, though. Yet most students pay back their loans.
What I'm proposing is that if a student graduates, and is unable to earn enough to pay his loans, then the college is on the hook -- they've effectively retroactively awarded a full scholarship. This would make colleges more selective about who they allow in, limiting to people they are reasonably confident will go on to earn a living. It will also result in colleges clamping down on student loans being issued to cover anything but tuition and books.