Similar to the scholarships given by schools, student loans should be offered only to those students that are going to use them to excel. That being said, student loans should be given with the intent that they will be taken if the student does not achieve a certain GPA. This type of trade-off teaches the student not only to be accountable but also forces them to focus and succeed in school.
If loans are simply handed out to everyone, the system would soon give money to those that do not deserve it and keep money from those who deserve it. Just like the welfare system, those loaning the money would be cleaned out of funds and some people who are willing to put forth the work in school would not receive the aid they need. And since we all know that money does not grow on trees, a system without a GPA requirement would fail just like the welfare system without strict guidelines is failing the United States currently.
Being a college student myself, I understand that some semesters are just harder than others and sometimes getting even a B in a course is just not possible. However, most colleges that those students attend already have a grade requirement of a C or a C- to adequately pass each course and I do not see why implementing the equivalent GPA is not feasible. If the student cannot make a 2.0 GPA overall, then she or he is not succeeding in college. That being said, taking the funds from someone who is not succeeding in school and giving it to someone who is succeeding or could possibly succeeds ensures the money is a good investment for the future.
However, I am not cruel. And I believe that, like the Bright Futures Scholarship system in Florida, there should be an allotted time to increase your GPA if a student does happen to have a bad semester and falls below the requirements. In Florida, Bright Futures takes away aid for a semester and allows the student that semester to prove that he or she can recover his or her GPA from the semester before. This system works well to hold the student accountable and also offers the student an opportunity to recover and continue in his or her education.