That's why I wish vocational schools had more prestige. There needs to be clear a distinction made between learning skills and getting an education. Neither is a bad thing in itself. I believe that learning skills, at a School (could be anything, ranging from Engineering to Law, Medicine, Journalism, Design, etc), can be viewed as an investment in the future (in terms of getting a job), and as such it is ok for it to rely on tuition fees. But getting an education, at a true University (with Arts, Math, Physics, History, Social Sciences, etc.), should be something that is fully subsidized. It wouldn't cost as much as you think to fund, since not many people would gravitate toward it in the first place. Once it's made clear that a University won't get you a job, you will only have people who go there who don't quite yet know what to do with their lives (until they figure out that to get a job they should go to a School), or people who have truly scholarly interest in the topic at hand.
There would be bridges between the two, of course. Schools would most likely require some courses to be taken at a University (this way, Schools would also partially subsidize Universities).