Consider the debt burden on society, whether that burden is borne by the students themselves, or by the government, may be roughly equal. If anything, the government pays less interest.

My thought is that in the future, privatizing higher education will seem like a quaint historical anomaly, like privatizing health care, both of which have made themselves at least twice as expensive as necessary.

If we can't force private colleges out of existence, we could concentrate on solving the education funding crisis starting at the level of state and regional colleges and trade schools. Preferentially direct research funding toward those schools, to build or expand on research institutes in areas where a few extra jobs would be welcome.

Ironically I believe we could destroy the private colleges by eliminating all government oversight of the admissions process, and letting them compete with one another with no restraint.