Probably impossible politically and even difficult operationally, but cutting off the federal funds would go a long way towards getting these institutions to get competitive.

Texas has been piloting programs that grant BA's for $10K. Not per year, all in (https://www.texastribune.org/2013/01/30/guide-getting-one-te...). If Texas can do it, why not more schools.

There will always be a place for elite educational institutions, the Rolls Royce of higher ed, but there should be a Toyota Corolla equivalent as well. This program in Texas proves that it is possible.