So here is how to fix this situation:
#1. Set a federal minimum GPA students must have prior to entering any university in which any student at that university accept, VA, Pell Grant, Federally backed loans of any kind or Federal Research grants. If you didn’t have a HS GPA of at least 2.5 (C average) then you shouldn’t be going on to College. Similar to the Japanese model but their min GPA is more like a 3.5.
#2. Require any public university to open their financial books 100% and posted online for anyone to audit.
#3. Establish a list of “desirable” programs eligible for Federally back loans & grants. If you want a degree in “Gender Studies” then you best save your pennies and pay your own way.
#5. Reduce the number of Student Visa’s the US gives out every year. The massive inflow of foreigners into our University System is inflating demand and increasing costs. This prices real American’s out of the market for our own publicly funded universities.
#6. Charge $20,000 per year for every Student Visa. This income from these funds will fund the Pell Grant program.
#7. Allow anyone to default on their student loans through bankruptcy after 10 years has passed paying off a student loan. Once a single student loan has been default that person will be ineligible to sign or co-sign any further student loans for life.
#8. Prosecute the AMA for restricting the number of certified university medical programs, as unfair monopolistic trade practices. The AMA does this to keep costs high and protect industry profits.
#9. Restrict University’s from padding their programs with needless “filler” courses. For example a bachelor’s degree program currently takes 5 years on average.
These are just a few ideas but the most important thing we need to do is to reduce the demand for college, lower demand will cause lower prices.