How do you think it can be fixed?
1: Re-prioritize. The Shulchan Aruch says that Chinuch HaBanim is the most critical Tzedaka (YD 249:16). If people would prioritize giving to Yeshivos for scholarships over giving to Aniyim who walk around collecting, Kupat hair, and the “popular” causes such as a “Rabbaim simcha fund” (like no one else struggles to make simchos), then we would have more money for Yeshivoa.
2: Incentivize – There should be incentives not to request a tuition discount. This would include giving those who pay full tuition recognition at the school dinner and events, the ability to choose teachers, and smaller classes.
3: Enforcement – It’s great that the grandparents want to buy fancy clothes, take their children on trips, and lease new cars for their grandchildren. But if they do, those grandchildren are not eligible for tuition discounts. Yeshivos should consider requesting time or objects in lieu of tuition, and should have the right to request budgets.
4: Mortgage – The Yeshiva should create a program in which someone who is getting a discount but owns a home has a lien placed on the property for the value of the discount, updated each year. That way, even if they don’t get the money now, they will get it when the property changes hands. This will be a huge help 10 – 20 years down the road, when serious money starts coming in.
Just a few ideas I’ve heard, none of which will ever happen.