> it would embolden universities to ask even higher tuition.
Then cap the amount you give out loans. Many of them are back by one level of the government or another.
> A second problem is that not all students get the benefit, some already paid off their debts or a large part of it. It would be unfair to them.
This is a very flimsy argument. Shall we get rid of the polio vaccine since it's unfair to those who already contracted it that our efforts with the vaccine don't benefit them?