If we accept that the risk of student loan is covered by the state in any rate and not by the bank then we can just cut out the middle man and have the state gi

If we accept that the risk of student loan is covered by the state in any rate and not by the bank then we can just cut out the middle man and have the state give out the loan in the first place under what ever condition that satisfy the public who is paying for it. Sweden has that system. Can't say it is that terrible.