politics
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Interest capped for all borrowers. Bond backed government loans with no for profit middleman. Support for dual enrollment, AP and other means of obtaining college credits in general subject matter. Loan debt dischargeable in bankruptcy for private loans. Income based, sliding scale tuition at public universities instead of bigger loans for those who come from lesser means. People forget many of these public universities that cost 30k a year were land grant colleges established for the education of the public in the public's interest.
Edit; the whole income based tuition sentence I somehow cut out in the original.
A wishlist of economic policies doesn't answer why you think it's a bad thing that tax money goes towards the citizenry who were taxed.
We could just not borrow it into existence. It's not like there is a surplus and we have to figure out how to give it back to the taxpayers. Just like we shouldn't have saved the banks in 2008 (the institutions and their shareholders, not the depositors.). Just like we shouldn't to fund genocide across the globe. Government spending should benefit the citizenship broadly, not pick winners and losers.