alt Hacker News> don't see the fundamental difference
You're kidding. The former means all higher net worth individuals to take on both the cost (via taxes) and the benefit (a well-trained workforce for businesses, well-paid, highly taxed contributors for the state, an educated populace of voters, graduates with stable work and in-demand skills). The latter is another example of America's "Everyone for themselves" theme, with students bearing the entire cost of their education, while the graduate, public, state, and businesses reap the benefit.
If the benefits are spread so widely, why shouldn't the cost be?
The students bear costs but no benefit to themselves? No higher wages?
My point is that it doesn't matter in principle if one takes a loan and pays it down over time vs. one is taxed at much higher % and that tax "pays down" a phantom student loan of "free" education.
It does introduce a risk and hence the incentive for loan takers to choose their degree wisely though. Which should lead to better allocation of labor but at a cost of some personal risk.