The amount that anyone can take out in federally-backed student loans should be capped at the in-state tuition rate for public university in your state. If you want to go out-of-state or private, you must pay the difference (through personal funds, private loans that are not government backed and dischargeable in bankruptcy, or through scholarships). This policy would significantly reduce tuition rates charged by private universities which currently charge arbitrary tuition amounts because their consumer base (students) can borrow unlimited sums while still minors (ie lacking legal capacity to contract).