This would save young Americans from going into crippling debt, but it would also make a university degree completely unaffordable for most. However, in the age of the Internet, that doesn’t mean they couldn’t get an education.
Consider the long term impact of this. There are a lot of different ways such a situation could go, for better and for worse.
The ease of student loans would not exist without government backing. In a pure capitalism, this wouldn’t be a problem.
There’s no such thing as capitalism without a state. It cannot exist.