I think there is something to be said for #2.
However, won't privatizing primary school have the exact same effect? Nevermind our new 80%. We'll then have 100% if primary school is still mandatory. Which I hope it will be - Unless we want the majority of our children to be day laborers.
I'm not sure #1 holds water. I fail to see how a guarantee on a loan has anything to do with the ability to raise the price of the service. Because it is guaranteed? Someone still has to take on that loan and what they will or will not agree to pay is on them regardless of whether it is backed or not.