This kind of thing reeks of desperation. Buying votes is like trying to incentivize addicts to quit by government sponsoring the drugs - at the end of the day, the average citizen pays for that and they are relying on students being either too ignorant or too self serving to ask the right questions.
It sounds to me like he has forgotten where he is again and thinks he's Oprah..."You get a free student loan, and you get a free student loan", but it's setting a very dangerous precedent because there is then going to be increased pressure next time on the President (whoever that may be) to uphold the same and that is a very slippery slope.
It's also been proven time and time again that if you can get something for free, you are far less inclined to work hard for it - so it may even mean that more students drop out or don't even bother trying because they (or their guardians) don't have any of the financial responsibility to repay the loan. Not a good move in my opinion.
The saddest part is the government always wants taxpayers to bail out its own debts in the end, and despite the mythology of democracy, none of us consented to any of it. But the illusion of a benevolent ruling class must be maintained, especially when we are in a recession, whether they are ready to admit it or not.