Exactly. To the tune of $120 Billion per year. That's a lot of people being artificially willing and able to pay higher and higher tuitions. The federal taxpayer guarantee on these loans is one of the strongest forces behind the dramatic rise in tuitions - if people can pay and pick the pricier institution, then universities will happily charge and spend more.
https://www2.ed.gov/about/reports/annual/2017report/fsa-repo...