I think you covered part of the problem in the second half of your statement.
In the US, part of the problem is that by making education debts non-dischargable in bankruptcy, and by the aforementioned proliferation of degrees that may qualify as 'nice to have' rather than 'increase earning potential'.
The end result is a lot of people who got a college degree that doesn't really pay for itself, and instead leads to 20+ years of debt, or 10 years of indentured servitude to a non-profit.
In the US, part of the problem is that by making education debts non-dischargable in bankruptcy, and by the aforementioned proliferation of degrees that may qualify as 'nice to have' rather than 'increase earning potential'.
The end result is a lot of people who got a college degree that doesn't really pay for itself, and instead leads to 20+ years of debt, or 10 years of indentured servitude to a non-profit.