For colleges I personally favor an all or nothing fixed tuition policy for student aid. Either they accept the amount given as payment in full, with no tuition

For colleges I personally favor an all or nothing fixed tuition policy for student aid. Either they accept the amount given as payment in full, with no tuition raises or sneaky fees xor they take a hike and go full private. That would prevent double dipping and have a fairly graceful failure mode. If the ammount offered is actually too low you would expect to see growth in rejection of federal tuition and more private market as a share. I am by no means an expert admittedly.