Everyone benefits when people go to school. I do pay for my schooling, and that of the doctors who will treat me in my old age, through taxes. It should go further.
An educated populace is 100% necessary for maintaining democracy. Feel free to go read your Thomas Jefferson on that, the sentiment is found throughout his written works.
Then it should be left to fail. Being set up for a retarded purpose doesn't make the purpose any less retarded.
I'm sure that the university has much more intimate knowledge of how their finances work than the losers crying to the press that their free government money is drying up.