I mentioned cc’s because you’re posting in the Penn State forum and I know PA schools are expensive and the state doesn’t offer much aid. Our schools in NY are affordable for students. Tuition and fees are ~$9k/year. Students can pay that by working summers and taking the federal student loan. It doesn’t sound to me like PA residents are as fortunate. So if you can’t, or won’t, pay full freight for your kid then 2 years at a cc may be a good starting point. Your child may not be able to borrow thousands of dollars, but by starting at a cc they can prevent your having to spend it. It’s the same net result for you.
I think all kids have built in skin in the game. If they don’t do well in college, they won’t be able to get the jobs they want. My children love to learn and they understand college is a privilege not everyone gets, so we didn’t feel the need to make them borrow to try to guarantee they’d take it seriously. I wouldn’t depend on loans having that kind of power anyway. Most kids don’t have a concept of what the $27k federal loans look like. If you double it by adding another $5k/year I don’t know that it would make any difference. Your kid either will appreciate the opportunity or they won’t.