Maybe without all that easy money higher education receives, they won't be able to gouge the public with their ridiculously high prices like they have been doing for decades.
There is a bottom line cost, though. For universities to function, a significant amount of funding is required. Tuition dollars are only a part of the equation.
It wouldn't be the expensive schools that go under. Non-profit schools that charge large amounts for tuition often have generous financial aid packages and large endowments. Their prestige will keep them afloat.
What would really happen is that a large number of private colleges would die overnight. I know that the Christian university where I work would close the doors overnight if federal financial aid were not available.
For state universities, either the state would have to pick up the slack, or enrollment would likely free fall.
We aren't making a ton of money off of the students. We cost less than most of the local private high schools. If our students didn't have federal financial aid (including loans), they couldn't go to school.
I certainly know I couldn't.
Sure, we can go back to the old days when you went to college if your family were wealthy, but that's not going to help the U.S. compete in the world marketplace.