Where I grew up any student who could maintain a 3.5 or higher could go to a state school for free, no loans. I even got a stipend. So in some places it might work.
[EDIT: to clarify, I grew up in the United States and in a not particularly progressive state.]
If it were general policy, the minimum gpa these days would be 3.5 because anything different would go against the misguided "all students college-bound" dogma.
[EDIT: to clarify, I grew up in the United States and in a not particularly progressive state.]