More precisely, for students whose parents don't live near the school. Or alternatively, online-only courses that offer the same diploma as the presential version. Or a compromise where the best N% students get accomodation, where N is a parameter of how decent your society is overall.
Since all the learning resources will be available online on, or through online 1-to-1 chats with mentors, it might be cheaper for students to work either from their parent's homes if their home has reasonable work conditions: a silent room with reasonable Internet access and no drug addicts in the house.
Alternatively, a public local library with free WiFi would do as well. But there would need to be a strict silence policy enforced, unlike most public libraries we see today. Ciro once saw a bird shaped noise detector that would sing if the noise went above a certain threshold, that was a good idea. Just like linting, it is easier to let machines decide deterministically on subjective questions to reduce useless arguments over who is right. Ciro has even seen libraries where the local council uses the same library open space as a citizen councelling area. What's the fucking point... these people have never done any deep work in their lives.
Then the state only needs to pay transportation and temporary accommodation to attend concentrated month-long laboratory workshop courses and week-long conferences, since the only reason for universities to exist should be the laboratories. In cases where the home conditions are not good enough, the state can either pay for on-demand WeWork-like offices near the student's home, of for a full on-campus accommodation as in a boarding school. What is indispensable is that all students who pass the entry criteria must have such working conditions. Students who stay home can also earn a scholarship to help pay for their rent, food and Internet access.
Anything else is just incredibly unfair to the poor. Ciro Santilli has already witnessed two cases, in developed, and under-developed countries, where very high potential poorer students were forced to work to support themselves in parallel to a demanding degree because their parents couldn't pay their rent on a different city, and the students mental health issues due to this. In one of those cases the student had to abandon the course altogether.
It doesn't help that school has become a pure student-evaluation system, which basically implies putting studets through a lot of useless pressure.
One of the stories that Ciro Santilli's father tells is about how when they were dating, one of Ciro Santilli's mother's greatest wish for her hypotetical child would be that "they should not need to work during their studies as she had". As destiny would have it, Ciro Santilli's family had good conditions and Ciro never thought even once about money. And even then, school still sucked. Imagine without that basic, mandatory, stability!