This was in the business department. Apparently, the people who are supposed to be teaching how to run a business valued their own a priori qualification tests over the experiences of actual customers[1]. While the situation pissed me off even then, the irony did not occur to me until years later.
[1] Academics don't like the implication that students are customers, but in this case the analogy holds.
If students had to pay the actual cost of their education, it'd be much higher, even in Ivy League schools. Universities complement the tuition fees by getting public funding.
And (in theory, at least) tax money should be given for a good reason. The public as a whole does not care about the personal benefits that some would get by gaining a degree. That's the private interest of those people, and we're talking public good here: it should help all.
Tax money is given to universities so they would create inventions and innovations in science and art, which are in the public interest. And to create those we need well-educated people to invent and innovate.
Thus it's not the students buying education. That's a byproduct, and they're not the customer, just a beneficiary. It's the public buying educated people.
Of course, this is all pinko-think, and it's true that some academics are just old farts who keep wondering how dare those students interrupt the academics very important nap time, and who thought of letting students in campus anyway?
If the students don't understand, how can they become educated?
That seems really unlikely. The fact that it's expensive to provide this exact bundle of services doesn't mean that's what would get provided without the subsidy. What's more likely is that the services that mean the least to the customers would get cut until the tuition was more reasonable. Without tax funding you'd get schools that were focused primarily on teaching. Like high school, but with more accomplished teachers.
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi...
The basic result is that the belief that foreigners are hard to understand leads students to perceive them as poor lecturers. For example, if you play the same recorded lecture to a group of students, their perception of how easy it was to understand is affected by whether you project an image of a Caucasian or Indian/Chinese 'lecturer' at the front of the room.