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Are you really comparing German college to the vast system in America that offers high-level specialization and opportunity to students of all academic backgrounds and abilities?
Germany is a mess.
I was just trying to make a point. Just a few decades ago, college was cheap enough that a part time job was enough to cover tuition. Didn't seem to hurt them at all, and you have no basis for assuming increasing public funding to those levels, or doing the equivalent of the GI bill but for all students, would hurt the quality of education.
Heck, existing schools would just have a much larger applicant pool, with ability to pay no object. So why with larger numbers of applicants would quality go down? At UT at least, the competition for slots has had the opposite effect. The admissions are more selective, and we're getting better students than ever. When I was that age, there was essentially NO chance a HS graduate with a completely ordinary (C or C+ average) record and median test scores would be rejected. That's just no longer the case at UT.