The government should have never got into the loan business. The government should have capped tuition, fees, room and board, to make it affordable for anyone to go if they so desired. They made this mess and now they are stuck holding the bag because I don't see people paying back their loans.
As for the investment into cities, I agree but one thing most people fail to realize, is policing is a big business. If cops didn't have manifested crooks to chase all day, their budgets would be reduced and certain parties can't have that happening.