Interesting assessment of the current financial aid situation. I used student loans for my undergrad back in the 70's, and avoided them for my Masters and law degree mostly because I hated dealing with the beauracracy.
One of the problems that I see with the cost of a college education is that there are no pressures to constrain costs. But suppose that Pell Grants and student loans would be denied to any school that raises tuition at more than twice the rate of inflation. That would certainly put a damper on the perpetual spiral of increasing tuition, which is really denying middle class kids an opportunity to study.
Of course, higher education is a unique situation, where Presidents are selected because of their educational accomplishments more than their managerial abilities.
More proof of the differing types of intelligence in life.