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wedrifid comments on Defeating Ugh Fields In Practice - Less Wrong
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Hell, you could even use this as a replacement for merit-based partial subsidies (though not for fully free education). Everybody pays 1000 at the beginning of the academic year, then over time they 'earn' back a percentage proportional to their grades, eg. 60% or so for a straight-A student.
That is a really, really good idea. And I don't think I'm just saying that because I'm biased.
Why would you?
Systems which provide financial privileges based on merit can be expected to appeal to those who consider themselves to have an abundance of merit. (And, naturally, any who dare speak out against such systems can expected to be considered to be doing so because they lack such confidence.)