Not to mention more overall dependence on the government. Students are being conditioned to rely more on the gov as they are funding their education (and providing no incentive for colleges to cost cut).
Another problem I have with gov programs like these are that the gov does not treat people equally. Middle income kids get screwed under the gov. Poor kids are elligible for pell grants (expanded under this specific program) and a large # of subsidies, rich kids often have their parents help or foot the bill, the large # of middle income kids stuck with big loans to pay back.