For the whole description of Open Loop University, go to http://www.stanford2025.com/open-loop-university/
It's a concept raised by Stanford D. School, but it's not sure whether it will be able to implement yet.
I really like this concept because it's a holistic solution to many drawbacks of the current education system. Affordability is just one of them, or I will even argue it's a by-product of the new education model. Another aspect is that it works within the constraints of races, ages and a small scale of local change without lowering the value of its education and avoid the difficulty of collaborating with other universities.
One of the consequences I can imagine is that it will lower the credibility of diploma in a positive way because people may not be able to get their diploma at their young ages. If the employers can start assessing employee based on their skills rather than grades and diploma, it will also allow people who do alternative education based on different resources thrive in this environment.