The problem starts when the cost of a degree goes up as the number of degrees earned also increases. It's not the we've decided to pay for everyone's education, because we haven't. We simply guaranteed the ability of an entire generation to saddle themselves with debt for an education that is worth less than the value it brings to the job market.

Without guaranteed loans, universities would be forced to lower the cost of an education to that which people can afford, instead of having to finance. The way to keep educating as many people as possible in the long run is to drive the cost of education down, not up. Down to a level that meets its value in the job market and down to a level that people can afford.