One big school didn’t have enough professors and class rooms for their entire freshmen class so they told some of the freshmen they would only be taking online classes BUT they still had to live on campus. Couldn’t live at home and save money while taking ONLINE only classes. 
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My friend whose son this impacted, chose to attend his 2nd favorite school instead.
End of conversation
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I think universities should have more dorms, but they don’t have to be nice dorms. When more students live off campus they’re often competing against uni employees and low income families for housing (if limited supply of housing). Access to loans helps them pay more for housing
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