It's true, they are not. Student loans are mostly a scam, designed to squeeze as much money out of young, inexperienced, and unknowledgeable students and families. It's rough. They definitely take advantage because they know they're vulnerable.
When I went to a commercial arts college, they were ruthless. Every week they had me coming in to pressure me to sign more papers to take out more money. As an anxiety-wracked 19-year-old, I just did what I was told. I was too scared to ask questions.