Wrong framing. I think it's more that universities are waking up to the markets' value correction for their product, about a decade too late. They nerfed the product into something of low value and are just becoming aware.
The universities themselves may react to market demand, if subsidies for their services decline, but it's also possible for subsidies to increase, despite the lack of value, as is often the case for a declining industry with a significant political presence.
† Student loans may be repayed by the recipient, but they are not granted based on the market value of the loan, so they act as much like a subsidy as student loans paid by third parties.