I am not only talking about university here. This attitude pervades the entire structure of education all the way down to primary school.

What I am advocating here for is different system that actually allows students to purchase the level of education that they want. Ideally the cost would be based on how much work the teacher has to do to shove the knowledge into your head. If a student is struggling, then they can either choose to pay more to learn it, or drop out. The current system is not a market for knowledge at all. There is no continous supply curve for students to change pricing. There is a huge economic inefficiency here, and I am sure that the surplus is not being captured by the students.