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Steve Hansen: Education Loans are Government Snake Oil

Steve Hansen has a provocative piece based on, of all things, a Paul Krugman commentary.  Steve reviewed the latest data on outstanding consumer credit and found that the recent data for non-revolving consumer credit shows an increase only because of college loans.  The following graph from Steve's article (marked up by this author) is the recent outstanding consumer credit data history.

The Krugman Op Ed that Steve referred to asserted that in recent years a college degree has little correlation to getting a job, particularly a job with good pay.  This leaves Steve with questions:  In promoting college loans is the government selling snake oil?  Is the government trapping youth with unproductive loans?