I'd expect the market to correct first on the students side by creating reliable tools to determine which college is most cost effective (e.g. a simple measure would be average time before repayment of college loan), which would then lead students to these colleges which are more cost effective, which would lead colleges to focus on employability-related courses (and on specializing etc).

Now there is the fact that people have conflicting notions of what education is for, because they're also looking for signalling, and could thus be misguided in their seeking of information (looking only for the most prestigious college in their affordable range).
Another thing is that employers, not students, are purchasers of signalling and consider that current institutions do a good job.
But I struggle to think why that wouldn't allow the development of fast-track colleges that would compress costs by focusing on employability-related courses, making them more cost-effective for a similar quality of graduates offered to employers.