Exactly, in a market where the government doesn't guarantee these loans, students would have to negotiate loans with banks who would be very invested in the abi

Exactly, in a market where the government doesn't guarantee these loans, students would have to negotiate loans with banks who would be very invested in the ability to pay back the loan after graduation. A cook (in this example) would be very unlikely to pay back a $250,000 loan, and no bank would fund that.