College students are paying for a service
Some “customers” don’t like that. They feel that if they pay their fee, they should get their B (or A). Of course, there are diploma mills they can go to that cater to those but employers tend to recognize those.
Speaking of which, employers are another (albeit more indirect) customer of colleges & universities. If an employer feels an institution puts out a good “product”, they will tend to hire from there. If not, not. Reputation and employment prospects are a reason why many students choose a given university. That reputation can certainly change over time.
Most of the work done in the world does **not** require a college degree. Even being President of the United States of American does **not** require a college education. There are many still alive who remember Harry S Truman.
Suggestion: Employers could use SAT and ACT scores and internships to identify bright, teachable, and energetic employees.
Most jobs are learned on the job. Historically, nearly all the work done in the U.S. simply required no more than sound mastery of literacy and numeracy to the 8th grade level. ( No, algebra isn't used by many.) My grandmother who was born in 1894 would find it laughable that it now requires a B.S. or M.B.A. to be an events planner at a good hotel.