Since I graduated 15 years ago, the public University I went to has increased costs significantly and massively improved student amenities. Baristas and rock climbing walls and whatnot. Why? It improves rankings and people will still pay for it, subsidized by student debt. If, say, people actually had to be able to afford the bill, I bet all the expensive nonsense and massive staff beuracracy would shrink in no time and the schools would go back to costs being classrooms and books.
Not sure which is best. The move the fee paying/state loan has seen the salaries of University managers rise significantly. The part time degree sector has been significantly reduced in volume.
http://www.bbc.co.uk/news/education-40511184
I do personally think that the classrooms + books + dorm/shared house route with subsidy for less affluent ones has benefits.
> classrooms + books + dorm/shared house
I think we can notice what's going on here. I do not know about the UK, but if you look at education costs in the US, it becomes painfully obvious. It's not books, classrooms or dorms the students are paying for. I mean, think about it. Which books can cost 100K over a bachelors degree, where most knowledge has been known for centuries already? Classrooms have been built years ago in the most places, and their marginal costs of maintenance is negligible. Dorms are not that expensive to run either, not to the tune of tens of thousands per year per student, unless you're talking about luxury which most people neither need nor can afford. So subsidizing those necessities should not cost much. Something else is driving the costs up.