I was obviously referring to taxpayer financed health care.

Then that's what you should call it.

I've had this discussion many times and I don't feel like typing up a long post, so I'm going to skim over things and respond in a short fashion.

government loans

Guaranteed loans ruin the price-responsiveness of consumers. Price optimization occurs by charging the highest price at which the largest amount of people will purchase a good. In normal markets, firms determine prices by raising the prices until they can't. Can't is defined by consumers not buying a good or consumers looking for substitutes.

When your customer base has access to loans, you would be foolish not to raise the price of your good. When your customer base has no such access, raising the price, leads to less profit overall. Without government loans less people would go to university; more people would go to 2 years of Community College and then transfer to their in-state university and live with their parents whilst commuting. I.e. going to college strictly for an education and employable skills.

Are you an economist? Because I doubt you'd say that if you were. One factor which was only present due to lack of regulations allowed the financial crisis to happen:

No economist, that I know of (I'd love to be proven wrong), claims a definitive understanding of market events nor claims that economists are in agreement about the causes of such events. The only thing I can think which economists agree on is price gouging laws.

Meritocratic inequality(for the reasons you mentioned) is OK as long as institutions are in place to ensure equality of opportunity (ie. Universal Health Care, Free or very inexpensive higher education). Extreme inequality like we see in the US however, is not. Simply because most of the resources don't benefit most of the people. Unless a tax system ensures that money is reinvested in the people as a whole, being born into money is going to be more important than attaining it. Then work ethic and intelligence won't matter. I think we can both agree that's a bad situation.

I honestly don't understand this last part. Most poor people can obtain decent jobs or decent incomes through community college, trade school, and later transferring to a 4year if they want.

I generally think the free market works very very well. It does more good than regulation and central planning does. But for it to work people (firms and consumers) must face consequences. No bailouts, no loan forgivement, etc.