Sure, that would improve access to school for domestic students whose family incomes are too high for government supported loans, but who don’t actually receive financial support from mom and dad. But that doesn’t mean more money coming in to schools from domestic students. It would not replace the cash cows.
I’m sure that, like anywhere, there’s some wasteful spending that universities and colleges could work on reducing. I’m all for that, and right now a lot of them are going through that exercise. That doesn’t negate the impact on domestic students from lost course choices as inevitably some of the cuts hit contract instructors.