I don't disagree, but do you understand what you're saying?
The majority of college students are borrowing money from the federal government. The more students borrow, the more indebted they are to Uncle Sam, thus making them slaves to the Fed. Make it harder to get into college, the government loses future wage slaves, thus losing future revenues.
Second, the colleges have essentially created a pipeline of funds from DC to their coffers. The higher their standards, the fewer students who attend, thus less money in their coffers to pay liberal, tenured professors.
Universities would allow 5th graders into their classrooms if they were paying to be there. College are no longer about the pursuit of higher education but about the pursuit of bigger buildings, more staffers, and more money.
All you write about the universities is true: it’s the big bucks they seek, not the dissemination of knowledge.