I'm on the fence about student loans, obviously American student loans are obscene, but smaller ones seem reasonable to me.
It's not fair on those who went directly into the workforce or became an apprentice that the university students get free money for living costs for 3 or 4 years.
The current system in New Zealand (simplified slightly) is that university is free, there are no fees, and you can get up to $180 per week for living costs as an interest free loan. I think it's a perfectly reasonable system. That amount isn't really enough to cover all your expenses unless you are especially frugal, so students still need to go out and get a job (or work in the summer), which I think is perfectly fair.
Every year spent studying you miss out on working at some entry level job for ~25k/y. After 5 years of study, you (in Europe) have accumulated a debt of ~$25k-$50k depending on whether you've had a side job or help from your parents. That means you've lived for ~$10k/y for 5 years, where someone in the workforce lives on significantly more, and at the end you're in debt as well.
Obviously the upside is that you get a job where it is reasonable to expect that you'll be able to repay the loan in about 10 years, but that's something you worked for, and something an ambitious person in the workforce might achieve as well.
Anyway, I don't think you can simply say it's unfair to aid students in their living expenses while they're studying. Obviously they're usually having a great time studying, but they also don't own a car, or a house and instead live in tiny apartments sharing privacy with other students. They usually delay their family building for the entire span of their studies, and often even until they've paid of (most of) their debt. But yeah, have them work some extra in the summer while the workforce is driving their caravans to southern France...
Students shouldn't need loans. It's an aberration.