So after high school. every kid gets a free ride for four years to party and "study" philosophy? How would that provide any benefit to society?
Instead, how about offering some kind of tuition assistance in return for serving the country first; call it something like "the GI Bill"
For one, because we don't live in Starship Troopers land? (Remember: Service guarantees citizenship, kids!)
Second - because if you gave an engineering student four years of free tuition, he's still going to take engineering. The future pigfuckers, er, I mean politicians, will still study PolySci and Law. You're just making sure that (for instance) your Med students can actually take up family practices instead of going into plastic surgery because they need to repay their loans.
The really sad thing is, the cost of educating your entire population can be covered simply by deciding to build a few less bombs or maybe not have a base in every country on the planet.
All that said - the points about finding smaller and cheaper places is worth reinforcing. We all know that your high school "permanent record" is BS. Well, unless you're going to hobnob with the hoi palloi, where you got your degree doesn't count for crap either. Better to check and make sure they have a good program in what you're interested in.