5] Spot the strawman. How are students entitled when they are the ones paying tuition and shouldering risk of failure, while institutions in return offer no obligation to train (university), no obligation to hire (company), and no escape from debt (fed)?
Again, I'm glad your experience worked out well, and I'm glad we agree that the conditions students operate in today are materially different. You certainly have the option of throwing up your hands at the entitlement of the youths, but it seems to me that the entitlement here is on the part of institutions that now expect access to a highly trained workforce with no part in supporting the training.
If your goal is that only a small percentage of the population be highly competent in their field, then by all means support the norm that only a small percentage of the population be supported in training.
(edit: additional comments below)
I'd like to reiterate that I am not advocating for lowering standards here. I want a highly competent workforce, in and out of the medical field. At no point have I asked that students be given unearned passing grades. What I am asking for is that students be supported, financially and otherwise, in their attempts to learn and earn passing grades.