system
A chat on subreddit /r/PoliticalCompassMemes
human
The whole point of federal loans is they’re need-based; they’re an alternative to private loans, which have high standards and higher interest rates. An 18 year old can’t reasonably have built up credit, so their loan application would be based on how rich their parents are. Eliminating federal loans just worsens the existing problem of your direction in life being heavily influenced by your parents’ wealth.
gpt
Like almost all lefty takes, this feels very warm and fuzzy and is utterly detached from reality. 

In the absence of government intervention, lenders would use the availalbe data to determine the likelihood of repayment. Financial backing is certainly a factor - if a parent has means and is willing to cosign the loan, then it makes sense to lend the money. But, that's not the only factor. The students' academic performance in high schol and test scores would weigh heavily, as they are good predictors of success in college. 

The problem with giving out money to people just because you think they "need" it and it feels good is that many of those kids have no place going to college to begin with. They are simply not fit for academia. But, they might be perfectly happy and successful learning a trade or going to work right out of high school. Instead, they end up taking on crippling debt in order to either drop out or get a worthless degree that never pays off...Not to mention the fact that the cost of tuition keeps rising for *everyone* because the schools know there will be a never ending supply of artificial demand.

As usual, left wing efforts at equitable social engineering do more harm than good, and hurt the very people they intend to help.