1) If a class is way over your head the university is wasting money having you there.
2) Having stragglers in the class that are far behind slows down the whole class.
3) Every seat that is filled with a student who is not ready for the class is a seat that can't be filled with a student who could actually pass it.
Where are you getting that from? Are you just dividing the tuition revenue by the university's budget? Because the university is there for a lot more than educating undergrads.
Even if you subtract the research budget out first you will still arrive at a figure less than 50% for most universities.
[1] https://en.wikipedia.org/wiki/Carnegie_Classification_of_Ins...
edit:
Where are you getting "many" (rather than "some")? The page you link to discusses colleges in addition to universities, and it's well known that colleges exist primarily to educate students.
> Even if you subtract the research budget out first you will still arrive at a figure less than 50% for most universities.
Where is that numbers coming form?
> Universities are composed of colleges in USA.
This is pretty rare terminology in the US, being mostly found in Ivy league or other old schools. Most "colleges" in the US are independent institutions.
https://studyusa.com/en/a/107/what-is-the-difference-between...
I am having a hard time finding aggregate data online that supports (or contradicts) my claims on a national level beyond what I have already provided. Unfortunately the edit timer has already expired for my comments so I can't delete or alter them. If you can find reliable data that contradicts my claims reply to my root post and I'll be happy to upvote it.