It is ridiculous, but it gets written off so I don't see the issue at the end of the day.
Do you have a source for how much is given away? This could preemptively be taking inflation into account. Are you also arguing that giving more away on perhaps the fairest loan you will ever receive, giving people who need greater financial the choice to take more out, a bad thing? I really don't understand why people are opposed to student loans when they are honestly such good deals. Yes, it's not free but there needs to be some adjustments to be made with a lot of things if we want to maintain our way of life and this is perhaps the best possible middle ground.
To clarify, if this was a more standard loan which will haunt you for the rest of your life and **** your credit rating, I would be 100% against this.