Since the 1970s, many colleges and universities have become predatory financial giants, while mountains of student debt pile up and academic work becomes ever more precarious. An ascendant academic labor movement may be key to reversing these trends.
You’re right–this doesn’t make sense at all.
When I was applying to colleges (public universities) the tuition was the tuition. Schools didn’t care whether the money came from scholarships, federal subsidized student loans, unsubsidized student loans, grants, parental loans, or cash.
I don’t even know how what the OP is proposing would work. Tuition is public and you would already know what type of loans you would be eligible for. Utilizing FAFSA wouldn’t suddenly make a public university 46k/yr more expensive.