So I see two questions in the OP. How does this work elsewhere, and how do we think it’d work in the US?
For the first one: I am from Norway. The government here has set up, and had certified a number of universities. Tuition is free. For most degrees, you only need to pass high school to qualify. You take classes at your own pace, and can work next to your studies. Most people take up student loans though, because while tuition is free, living while you study isn’t.
Some classes are very popular, and some only admit a limited number of students each year. Admission to these classes are competitive based on grades. It has always struck me that this system is more American in its pure competitiveness than the actual system in America. You can also get fractional bonus points from things like relevant work experience.
These degrees tend to be vocational degrees leading to in-demand jobs. Medicine, law, engineering and finance. Medicine tends to be the most heavily competitive. I believe it is very rare for a student to enter the 6-year medical study straight out of High School, it is so heavily subscribed an A+ average does not always get you there. Most physicians in Norway have several years of other healthcare jobs before they can enter the study.
You can also attend certified universities outside of Norway. The student loan scheme is very generous for people who do. We are such a small country, we need to take steps not to get insular. Financial advisors, in fact recommend paying off your student debts last, if you can. All other debts are more expensive.
I am not sure how this would work in the US though. Our setup means that a degree isn’t the ticket to a good life in the same way as in the US. You get good healthcare regardless, you don’t need a college fund for the kids, etc. You can work as a cashier all your life without it being a disaster. And if you are the sort who likes working with your hands, university may just be wasted years compared to an apprenticeship and career as a plumber, carpenter, mechanic etc. About 20 % of each year go to Uni.
I think the numbers would be much higher in the US because a degree is so much more necessary.
On the other hand, I always thought that universities spend so much money on sports in the US as a PR thing, to attract more students. Our universities are not that concerned with sports. And I think that saves big money compared to the US.