re: Should Arts and Humanities Majors be denied Grants and Loans?

No, but the government should incentivize productive majors through better terms.

In a perfect world, we'd not only do that, but exaggerate the incentives or lack thereof the further down the chain you get.

Getting a humanities degree from a terrible school is not something the government should shell out 100k for. Government loan restrictions for for-profit institutions would largely dry up those cesspools, or at least make them legitimize their business model.