Provide a way to get a lower-cost credential without using the tuition to subsidize research/athletics/arts/social programs.
But that might be counter to their whole nature. Doesn't mean anyone's being irrational though. They're now de-facto gatekeepers on entering the professional class. I don't think it's unreasonable for the gate-kept to have opinions about the -keepers.
Honestly, it feels like the kind of thing that companies which actually want merit-based graduates should want to subsidize more aggressively.
If you're a billion-dollar company that only hires college grads, it feels like there's gotta be value to you in making sure there's more meritocracy in the process of getting degrees.
It would also change who the customer is so that the university doesn't "owe" the student a degree which makes the evaluation that universities do a little less rigorous.
Why do they want meritocracy? The companies I've seen up close want "certified Smart Kid", in which case nearly any degree will do; "pre-trained worker", in which case they require a degree in a particular field; or "someone well-connected", in which case they want someone from a limited set of schools.
(Companies do subsidize that limited set of schools, and pretty heavily, but it probably has more to do with social connections than economic merit.)
The system might break down to the point that what you're suggesting makes sense. On the other hand, "Indebted Worker" (from any of the three types above) allows companies a lot of power over their employees, so it might not.
I've got the ticket to get in the gate and I'm pretty resentful of having to get it. Looking back there were a lot better ways to spend 4 years and 100k.