All loan programs that make no economic sense will likely vanish. For example, consider student loans to HBCs, student loans to 2 year colleges (except to narrow programs like the Police Academy and the Nursing program, etc) as well as the loans to certain vocational programs – if the default rate is historically high, the loans will likely no longer be made in favor of better uses for the money. Loans there aren’t “loans”, they are “subsidies”. Subsidies will be radically cut back.

People will adjust their lives accordingly. It’s possible the 2 year colleges, if they survive the crash, may have to refocus their efforts on vocational programs that lead to the valuable state licences and certificates that in turn justify the relatively higher expense the students have staying out of the job market. In an economic crash, jobs are more precious than ever, and subsidies are taken away.