Yes, there are too many who will never even use their degree in a professional capacity but that doesn't take away the mind development and critical thinking that went on there so it's not a waste.
Is it a waste? That depends on whether or not an available job makes use of those skills. Somehow, amazingly, a great many of these jobs were filled by people who merely had high school educations decades ago yet the nation did not come apart at the seams.
Also why yes the feds have distorted the education market with loans but I'd rather have a system where everyone gets a fair shot than just the privileged or very smart who slide in under scholarship.
This is the real policy issue. Let's suppose that the government stepped in and reduced the number of college degrees issued to what is needed plus five or ten percent. How would we decide who should be able to go to college? Let the best-and-the-brightest in, I say. However, the other side of the coin is that it could further cement class stratification and completely contradicts free market principals.
So, the issue is, is it better to have more economic efficiency and fewer people whose lives have been destroyed by college education for which they cannot find employment or is it better to have college education opportunity for everyone while also having hundreds of thousands if not millions of angry and indignant people who (perhaps somewhat rightfully or at least understandably) feel entitled to solid middle class jobs who cannot pay of their student loans?
It's a choice between (1.) having a better economy (less economic waste and inefficiency) and fewer suicidally unhappy people while having people who feel they have been denied opportunity and (2.) a worse economy, huge numbers of unhappy people, but opportunity for all.
I think we would be better off with the first option. Also, there would be opportunity for people--just prove on various standardized tests that you should be part of the group of people who are allowed to go to college.