I think what you're saying is an exception for those that never completed a 4-year degree. Community Colleges will pave the way for those seeking higher education in this case.
TBH this isnt a bad idea. I dont know the full extent of it, but allowing all citizens and permanent residents the ability to get enough credits for at least an associates would go along way towards lowering the overall cost of a college education. Community colleges are cheaper, and a AA or AS degree generally covers all of the pre&general education requirements 4 year schools make you take, but 4 year schools generally require more credits to do this than a standard AA degree needs.
So going the Community college route to get your AA, and then going to a 4 year school allows you to focus purely on what you wanted to learn in the first place, lets say mechanical engineering for instance. It's not only cheaper but you can shave a semester or two off of the overall time it will take to get your bachelors degree.
now lets kick it up a notch. Say you have a high schooler that is pretty smart, well you could dual enroll them into the local community college and they can work towards that associates while also in high school. When they graduate they will either have their associates or be fairly close to it; meaning the time it will take them to get their post secondary education finished and enter the job market has been reduced.