> The current proposals as I understand them will subsidize tuition at the current, severely inflated rate, letting the colleges get away with their price gouging
This is great point in my opinion. Solving this issue in the real world is not simple, it comes down more to the political power of various competing factions than it does to coming up with a "big idea". Once you have a "big idea" (like free public college), unless your faction has sufficient political power, then how are you going to implement it?
The problem is not that we are lacking big ideas that will work, there are many of them. The problem is we don't have the political power to implement a single one of them.
Consider this statement from the OP:
"Look no further than this chart (https://i.imgur.com/B3sVMjg.png), around 2010 was when the gov started fully backing and giving the loans directly, and conveniently it's when students needs for loans skyrocketed. It's so obvious that colleges took advantage of it."
Right now the gov't intervene's in public education by "fully backing and giving the loans directly". My position is that not all forms of government intervention are inherently bad, for example, the way the government intervenes in public high school is something we both agree is good.
I believe that the current way the gov't intervenes in college education is deeply problematic, and that instead of completely removing the role of gov't, we should copy the model from high school which has proven to work very well.