The direct consequence would be that banks would stop issui…

The direct consequence would be that banks would stop issuing student loans for people who will not be able to repay them, diverting money from studies that are not productive to society, which means that universities would have to refocus on productive courses and/or drastically lower their prices. Young students would hear from their older siblings that you always have to repay your debts, so would keep incentives to quickly learn to be less naive.

And as a general principle of life, if you realize that the burden of a responsability is too high compared to what you expected when you sign for it, it is more responsible to negotiate for a lower burden rather than to completely drop the responsability to someone else.