That doesn't work, because the Universities benefitting from the high-risk student loans are not the ones making bank from their grants and endowments. This is

That doesn't work, because the Universities benefitting from the high-risk student loans are not the ones making bank from their grants and endowments. This is an imagined enemy fallacy. What you're really doing is demanding that Harvard somehow make whole the defrauded students of the University of Phoenix. Now, sure, there's a genuine argument that those diploma factory schools aren't providing valuable service and are just parasites subsisting on public loan guarantees while their students bear the risk. But that's not a financial argument, it's a regulatory one. No one thinks that people shouldn't be allowed to float a Stanford degree on loans, and "dismantling the entire system" just guarantees that we return to the era where only the rich could afford Ivy degrees.