Should college be subsidized?

All US states subsidize education for college students, mostly by charging below-cost tuition. Nearly free tuition is available in many European countries and has been proposed in California (see p. 80).

Should the government subsidize college education so that it can be provided with very low tuition? Or, should college education be allocated in a market system, in which prices are set by supply and demand?

Using the accompanying chart based on the three basic economic questions (What? How? and For Whom?), list the benefits of, and problems with, subsidized college education: