This is part of the problem, in fact it's probably a major cause. University shouldn't be for vocational training, it's a place of learning and research.
The old system of training on the job was much better, when nursing degrees started my nurse friend was tearing her hair out as so many graduates dropped out.
Universities are struggling because they offer a crap over priced product, and kids don't want to be saddled with huge debt for a worthless piece of paper. Graduates are finding it more difficult to get jobs these days, why bother bailing out this bloated, failing system, it needs streamlining not propping up.