And I would ask this:

It takes 7 years to rebuild credit after declaring bankruptcy. If there is not a reasonable expectation of being able to pay off the bill in 7 years, why would you ever offer it/take it? That is what both the lender/school AND the lendee should have to answer. If graduates aren't meeting that timeline, it should be tracked an available to anyone who is considering the school and career path.

Loans aren't a bad thing, but it's basically using money you will have later to pay for something now, and it will always cost significantly more by doing it that way due to interest. These factors mean it is inherently dangerous. There has to be a reasonable expectation that it will pay off. The 7/7 way is a good measure IMO to gauge that.