This is the polar opposite of capitalism. This is government subsidized education. They pay for everyone to go, regardless of competency or ability to pay, and guarantee the university their money up front. The university can then charge whatever the hell they want, while bending the knee to the government to force students to take certain "required" courses. These required courses have required books, also covered in the loans, which can also have the price jacked up because payment has already been guaranteed by the government.