Get the federal government out of almost any area of commerce and prices will fall.
“Get the federal government out of the college loan business”
Certainly federal loan caps are in order, for the individual student, probably no more than the average amount paid up front per student at the institution.
A student might be able to get a $20,000 loan to go to Harvard for a year, but only say a $4,000 loan to go to a state or for-profit college for a year.
Alternately, I think perhaps the college should be the one borrowing and then the IRS takes a college/student agreed percentage per year (up to 4, up to 3% per year, for 10 years) of the college graduates’ incomes above the hourly minimum wage*2,000 to repay the college’s loans. Sort of like the English system, but with the college taking out the loan.