There is an education bubble. But it isn't caused by the government (not directly, though they do contribute).
It is caused by people saying "we don't have enough people to fill positions in X field, gotta get more people with degrees for X" when the truth is closer to "we don't have enough people to fill positions in X field at the slave wages we want to pay them, better sucker them into an expensive education in field X so they feel they can't do anything but X but are desperate enough to accept slave wages".
There is a massive mismatch between what we are told the "value of education" is, and what it actually is in the working world. It's become where the cost of becoming X Job is greater than the pay from X Job even assuming you can get any job after graduation, at all.
They fill these kid's heads with stuff about college = a job and then deny it. They're told from the time they're small to "study hard, get good grades, go to college and get a good job." Also there's, "you don't wanna end up flipping burgers, do you?" along with a million other phrases you hear.
We then act astonished and say "we never promised you a job." Yes, yes they did, from the time they were children. We also say, "today's kids are lazy and too stubborn to flip burgers." That job has been demonized and degraded and we wonder why people don't wanna do it?
Society makes fun of people who do this and tells people to go to college so they don't have to do it.... That's wrong....
This isn't as hard as people are hopefully only pretending it is.