Does State, private varsities deal make economic sense?

In the last one week at least three private universities have publicly listed the government sponsored students they have admitted. Others might follow soon. It is the first time the government is taking this step. What informed this decision? Does it make economic sense?

There could be two reasons. One, the government is opening more opportunities for our kids to pursue higher education. Two, and this is said in whispers; the government has given some private universities an economic lifeline. It is public knowledge that competition in higher education is driving some private universities to economic dire straits.