I think this is the solution for the top schools that have very rich people willing to pay full boat tuition and/or donate to the endowment. State schools are

I think this is the solution for the top schools that have very rich people willing to pay full boat tuition and/or donate to the endowment. State schools are still mostly affordable. The top 100-150 private schools (including both tech schools and private schools) can probably operate like the top schools. Many people go to them for their location, their campus, their athletics, etc. But what should the 'lower tier' schools do? That's where the real problem is. They cost nearly the same but don't provide as much value. Rich people aren't lining up to go to East Crappy Value State University. So everyone has to pay much closer to sticker price - needy or not.