They'll simply emigrate to greener pastures.  Boomers don't seem to get it through their heads that they can't have everything and still expect more.  Nobody wants to pay taxes, grants/funding drop.  Tuition rates have been steadily increasing past inflation, government looks the other way.  Scholarships are increasingly identity based, merit is so passe.  After graduation there are little to no opportunities available, so why would anyone risk financial ruin for loyalty when they have been taken for granted?  

It's already happening.  Many Canadian students are using co-op as an out.  They purposely take terms outside of Canada to build contacts and then after graduation they leave the country with their subsidised education.  I don't blame them, hell, I am thinking of doing the same.  Why not?  Getting constant offers from SE Asia, Europe, and the U.S. asking to consider them after graduation while Canadian businesses won't even call back for an interview.  Canada will lose, big.