One big thing would be that loan companies would need to be immunized from lawsuits if a disproportionate number of students denied loans, on the grounds that their profile (SAT scores, high school GPA, prospective major) did not make them good risks.
I would be in favor of the feds making "disparate impact" no longer grounds to assume discrimination, but that would take more political courage to pass than Congress currently has.
I will say this...I was a non-traditional student. I flunked out the first time or two on my parent's dime, then joined the military. After six years, I returned to college with my meager savings and with student loans. (I didn't have the GI Bill, as I never signed up for it.) If I had to rely solely on my SAT or ACT, or my high school GPA, I would be hard-pressed to get into a small trade school, much less a four-year university. The whole government-student loan practice is supposed to be mutually beneficial. The country "invests" in promising young students, who in turn graduate and become productive members of society and contribute back to that country's resources.
Sadly, there's too much graft, and too many leeches in the system.