As the economy rises so to do the cost of things. Not just the typical living expenses but things like schooling. Loans seem to have become a necessity to be able to put oneself through school. At this point it's a vital thing that not only allows opportunities for the students to get a better schooling but allows for aid to continue a cycle of give and receive.
It's pretty much fact that no one enjoys being in debt or wants to be in debt but sometimes it's necessary. People take out loans to buy homes, start businesses, and get better educations beyond the locally provided one. Debt is often vilified but loans themselves can be extremely helpful to getting a leg up in the world.
To completely remove the student loan system would in simple terms be chaotic. For one, while student debt goes into the trillions, running Harvard alone costs 4.7 billion dollars.
One college out of the 25,000 that exist globally, not even including graduate schools. The costs of schooling might seem unfair to an outside perspective but it takes a lot of money to keep an entire campus full of dozens to hundreds of staff members paid.
The student loan system allows for the schools to get the money students might not be able to pay immediately, in full. This allows them to use the money they received from the loan without having to worry about late payments or lack thereof. It also gives the students freedom to pay off the debt in their own time and while interest occurs they have different options and ways to take care of the debt as long as they are smart about it.