What I consider is that if they are smart enough to get into college, they are smart enough to read a loan agreement.
Personally, I think you're giving way too much credit to todays High School Graduate ..
From my understanding, which, in many cases, is old men talking smack, a good portion of college students demand that they follow their 'Dream' .. which means majors in the Arts and other type, similar, studies .. so, by the time they graduate with a degree, that paper means essentially nothing, since there is an overabundance of applicants vs jobs as it relates to things related to 'The Arts' .. so, they end up working at a Starbucks ..
Thusly, it's no wonder that they can't pay back the loans .. unless, of course, Mommy and Daddy step up ..
'Hey, youngster, consider becoming a mechanic / plumber / electrician .. keep your nose clean and you'll always have a great paying job .. ' and maybe, just maybe, you won't be saddled with a mountain of Student Debt that allowed you to party like a Rock Star for four or more years ..