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Nonsense. The people getting the loans to not have carte blanche to do whatever they please with it. They can't just give it to their cousin philbert and claim he is a university, for example.
Plus, not allowing that money to be used at overpriced LA schools that aren't even ranked helps the student far more than they probably realize. Unless Jesus can miracle their ass a job, they're probably ****ed with a ****ty ass LA degree and 100K in loan debt.
If they want a loan they can use anywhere they want, then they go to a bank just like anyone else.
The school can still exist. Students would still be able to get loans (private ones). They simply couldn't have the federal money. It's nothing to cry victim about.
As long as the school is accredited, it is not the business of the government, or you, to pick and choose which ones are the desirable schools Give it to Berkley, give it to everybody. If you are talking the job opportunities in a given field, there is probably as much demand for preachers as there is with graduates with degrees in women's studies.
Myself, I think that the government should get out of the student loan business entirely. The only schools that should be under the control of the feds are those they fund. That would be the military academies.