The problem with what you suggest, IceCream, is that it closes off the arts, law, sciences etc., to all but the wealthiest or the children of the wealthiest.
It also turns universities into businesses if they "have to be paid for". This is happening already, which means some universities are now 'selling' degrees to potential students. So it changes the balance of things, whereas before students competed to attend university, now anyone can go if they 'buy' the right degree.
So things like getting a law degree for example, which, back in the day was a badge of honour and almost a guarantee to get a 'good' job, now law graduates are in oversupply. Many, many of then cannot find jobs or traineeships. Some universities are happy to continue to churn them out, as they are becoming more like businesses and are less concerned about whether their graduates can actually make a career out of it. So they end up, like a former colleague of mine, working in bars, cafes etc on minimum wage, rather than in a solicitor's office and...you guessed it, they can't begin pay back their loans till much later in life. Silly isn't it? And it's no good for the graduate either, as by the time they have to pay back their loan, they will probably have more outgoings; mortgage, childcare and so on.