Getting the government out of loans does not mean there will be no student loans. What it means is that private loans will be issued which will look much more at if the student has the ability to pay the loan back.
Right now we give students loans regardless of what their gpa is and what field they're in, which is a huge factor on whether or not they'll be able to pay the loan back. We've created this massive demand for college, but without students being restricted to what they can afford with their savings, the universities aren't concerned with price control. So, they focus on providing the biggest features to the school like 24 hour fitness centers and deluxe dorm accommodations. Things that have nothing to do with the cost of education. The cost of education is rising very appropriately with the rate of inflation. The rate of tuition is not. That means the schools are spending the money on other things.
The massive increase in the cost of education is nothing but the result of government making loans super easy and accessible. It's the exact same thing that happened in the housing market. Government should get out of loans, allow private businesses to offer much stricter loans based on field of study and student performance, AND stop telling everyone to go to 4 year schools. I believe everyone should get an education, but we're ending up with generations of bachelor's in psychology and english who can't find jobs, when if they had just gone to a 2-year technical school, they could be earning more money and be less in debt.
WITHOUT government subsidization, you'd see schools focusing on how to provide cheaper education. Which means more online services, more telecommuting, better IT infrastructure, and more high tech jobs. But schools aren't focused on cutting costs. They're focused on getting big amenities to attract more students.