My university just allows anyone into first semester, but then has quite hard courses and exams there already – by the end of the second semester, 90% have already failed.
That’s another way to solve the >10x applicants issue.
Seems like a great way to reduce administrative overhead, judge based on merit, and get students to realistically self-select a college (if you don't, you waste a semester and the associated costs). Problem is that the exams select only for people that are good at taking exams - not always the most interesting/well rounded students.