If "makes perfect sense" solution to college is usury, we have serious problems with our higher education system.
It's time to start funding these schools adequately so that they do not immiserate everyone except those with wealthy parents. It's the opposite of a meritocracy.
I'm not sure if the spending or funding side is bigger issue, and surely this depends somewhat on the school, but both must be brought in line rather than forcing it onto our future workers.
The one thing we can't do is stop funding because we have pre-decided that it won't lower tuition. It's easy to attach strings to money, let's do that.
I would start by looking at variance in state funding pre-covid. Reducing funding: increasing tuition to market limits, then cutting expenses. Increasing funding: increasing expenses and increasing tuition to market limits. Tuition has roughly on an 8% track and historical circumstances vary, so pricing and spending reactions aren't immediate.
It's time to start funding these schools adequately so that they do not immiserate everyone except those with wealthy parents. It's the opposite of a meritocracy.