I agree. The system right now is fucked, and we are at least 20 years out before we see the full ramifications.
Instead, I imagine something different for a school. If someone fails a course, one has to retake it. This is silly if one is trying to learn. Instead, the answer is to stick with the area of problem until it is understood. But, because profit motives take hold, it is simply easier to fail someone.
The better answer for teaching is less material per class, shorter classes (vs 18 weeks), and quick to fail. And aside that should be no punishment to fail. In essence, aside laziness, it is both the teacher and the student who fail when a concept is not learned, but the onus lies purely on the student in our system.
I also believe that payment should be hinged upon future earnings, and not a ballooned sum payable in the hopes of a job. A percentage would be fair for X years... Of course I acknowledge that this could cause the liberal arts to falter. Marx and Engels divined this long ago with their analysis of capitalism and supremacy of what we call STEM degrees.