Or, Econ 101 could actually be used. If there isn't anyone able to pay the cost of housing and tuition and books and lab fees and miscellaneous fees because there isn't any lender of last resort, they'd also have to reduce their administrative overhead, close or just - you know - fire their overpaid sports coaches and close the athletics departments and have IM teams for exercise. Wow - I must still be dreaming and not awake yet. The thought that schools would put teaching ahead of building new training facilities for athletes - that's crazy talk.
The other big expense at colleges has been in buildings and particularly dorms. When I went back to visit the college I attended, I couldn't believe the changes in the dorms. My old dorm was still there and in use (and I know it was - well - aged would probably be polite compared to when I was there). It was still in use but it and its companion were slated for destruction soon and may have been by now. There wasn't anything wrong with the dorms I was in in my opinion, but in the attempts to attract new students all of the big colleges have been building new facilities to try to look attractive and provide all the amenities.
I agree that having people who want a broad education receive one is great. I completely agree that such an education is good for many careers. I also believe engineers, doctors, and scientists should be able to write well and spell and should know something of history and perhaps be familiar with some economic theory and a foreign language. I also believe that high school English, History, Foreign Language and the rest should be sufficient training for most everyone in those disciplines. Only economics and basic law are probably not taught in high school.
If they didn't go to a high school that taught anything, or they partied and didn't choose to learn anything in high school, then they probably aren't going to be in the school of engineering or in the science department anyway because they're tough majors. There are many other requirements at most colleges that are not useful for many degrees but are still requirements for graduation because colleges feel everyone should be well rounded and the big liberal arts programs need money. But it's not a two way street. The liberal degrees don't generally have to do much hard science or basic engineering. I'm not painting all degrees at public / private colleges as worthless, but there are certainly a great many courses being taught that are.