Exactly that. Also, I experienced a situation where a free uni (eastern Europe) had low admission criteria and then had a "cleaning" math course, which 80%-90%

Exactly that. Also, I experienced a situation where a free uni (eastern Europe) had low admission criteria and then had a "cleaning" math course, which 80%-90% failed. School still got paid for the number of students admitted, not those who passed. In another European country, schools get paid for students that passed.