That benefit isn't large enough to justify the cost. If you're just talking about subsidizing the education of the most promising 5 percent of students from disadvantaged backgrounds, then sure. Otherwise, no.
It's too late to change. The economic damage of pulling back government spending for financial aid would totally destroy many schools and the cities and businesses that have grown up around/downstream of them.
Protecting jobs is not an argument for continuing wasteful spending. The same argument can be deployed to justify agricultural subsidies and many other wasteful practices. The net result is significant harm, even if locally and short-term it is the path of least resistance. It's procrastination at the level of a country.
You're not wrong, but when it comes to political will for change, destroying jobs and opportunity is not a good look. Democracies really cannot effectively avoid handouts to entrenched interests.