[inthewoods]

I like the idea of there being some requirement on student spending for these educational institutions to maintain their tax-free status. Not dissimilar from requiring insurance plans to spend a set percentage (say 85%) on healthcare vs. administration. Having said that, I'd want to game it out to see how the institutions would react and what it would do to prices.

The other idea I like is that once an educational endowment reaches a certain size, all students should go for free (or it could be on a scale relative to endowment size) in order for the institution to maintain their tax-free status.