Will this result in a more highly skilled, and a more highly educated population? Yes.
People should still be able to afford private schools if they can now.
The American idea that you can't mix socialism and capitalism is absurd! (urg, just saying these words makes me feel like I'm using outdated old ideas from the 1800's!)
Societies much better than USA are mixing them well with great effect. Selling out your young people with debt is really silly. Having 45% illiteracy in the USA only benefits the people currently in power.