I guess the step is one in the right direction.
But the key, in my view, is to have the institutions who are making these loans take the responsibility for them if they go south. And the only way that will work is if the institutions have a right to refuse loans that they just don't think will be paid back promptly with interest.
Loaning someone $100,000 or more to get a degree in LGBTQ+ Studies just doesn't seem like a good investment, particularly if the borrower has no collateral, no other income and no co-signers. The degree if they are successful in getting it, is only good if the person seeks a job as towel-boy in an LGBTQ+ bathhouse, and I don't think that job pays too well.