But isn't that then kinda saying that only the rich can go to the fancy schools and the middle class to lower have to go to CC or a state school?
Not really, for a couple of reasons. First of all, it's still not the federal government's business to hand teenagers money to make sure they can go to expensive private universities.
Second of all, those $35,000 tuition rates are dramatically inflated, and the federal government is a significant reason for it. Instead of giving poor kids access to quality education, this loan program has led to tuition rates skyrocketing at many times inflation rates while the number of college graduates and the quality of college education has remained stagnant.
There's nothing wrong with state schools. You can get a world class education and become literally anything by going to a state school. I'm going to a state school now, after having gone to a very expensive top-tier private university, and the education I'm receiving is honestly equivalent. I plan on taking this state school degree and going to medical school with it.
This is just example but what if I was accepted at Harvard to become doctor but say its private university but I have no money to pay, a bank won't give me a loan and even with a partial scholarship and a job, I can't afford it, why should I have to go to a CC and not be a doctor because I do not have a lot of money. Why should I not live my dream of Harvard just because its pricey and my parents can't pay for me.
Not everyone can get a private loan, not everyone can get full scholarship etc.
You don't have some God-given right to go to Harvard. If you can't convince a bank, alumnus, or other benefactor to give or loan you the money to go to Harvard, then you don't go to Harvard. That's life.
I wanted a lot of things I couldn't afford at 18.
Oh, and I promise you that if Harvard had lots of its carefully selected applicants decline to go because they just couldn't find the money, Harvard would figure something out, such as organizing a bank or banks to give those private loans. Some schools already do this.