If it is easier for the student to pay for the training, the flight schools will increase their rates. For example, I know for a fact that flight schools will increase the cost of training for students that have university (loan) or government funded training (GI Bill, VA) simply because they can "afford" the surcharges, and the increased prices don't affect their decision to fly for "free"... The government should stay far, far away from this, on the civilian side.