unlimited university loophole

The EO applies only to a person who:

1. is outside the United States on the effective date of this proclamation; and
2. does not have a nonimmigrant visa that is valid on the effective date of this proclamation; and
3. does not have an official travel document other than a visa

Non-American university students in the US have all three: (i) they are in the US at their university, (ii) they are on an F1 nonimmigrant visa, and (iii) they hold a passport and an I-20 issued by their university.

These students are exempt from the H1B ban; they can (and will) apply for jobs in the US.

There are 100+ universities in the US handing out student visas (to collect $$$ for their cash-cow masters programs).

What is the "unlimited university loophole" this EO fixes?

There's a whole bunch of restrictions in that EO that people don't seem to be reading. I don't understand why, such exclusion restrictions were a big problem even with past executive orders.

This hits close to me: two of my siblings have been struggling to find work as entry-level programmers for a while now.

I am concerned about the following though; these restrictions seem to do a good job eliminating low-paid H1B workers, but what about the well-paid ones with advanced STEM degrees?