This would save young Americans from going into crippling debt, but it would also make a university degree completely unaffordable for most. However, in the age of the Internet, that doesn't mean they couldn't get an education.
Consider the long term impact of this. There are a lot of different ways such a situation could go, for better and for worse.
It's also possible that lack of access to higher education would cause SOME kind of populist uprising, which people then hope would lead sweeping economic and social reforms.
But I'm increasingly pessimistic that populist uprisings in America would lead anywhere other than Christian fascism.