Hmm where I'm from and also the UK, it's almost a rite of passage to go travelling around the world for a year before starting work.
Banks know that students want to have fun, but then as they grow older, they will start work, and possibly get a mortgage.
And they might stay loyal to the bank that gave them a small travel loan. Also it could be they need the loan to cover flight and initial costs before being paid.
Then when they start work in Australia, they can cover the loan. That's definitely the way in Ireland. Not necessarily irresponsible.
Your from Canada, and I am not sure of this "student travel" thing exists there.