Why not just let students borrow the money at the going rate and pay it back like money anyone else borrows. What is wrong with that? If someone wants to go to college they will have no problem going. They can work and live at home and not have to borrow any money. That is what my niece does. Why go in debt. Oh I know. You and the young men and women want the children to have a carefree good ole time at it. Well that is one of the problems with making college cheap or free. Everyone may go but a college degree will end up meaning about what a HS diploma does and the young people will learn nothing as they are there to have a good time FREE. Silly me. I thought I and others went to college to become highly educated not drug and sex overdosed. Sad state of our society.
A lot of people do that. Of course, it would make a lot more sense if you could deduct the tuition, or at least the interest on the loan. For tax purposes, though, it's not treated like an investment or a business expense, irrespective whether you think of it as an investment or business expense in your own mind.