Just short of downright evil.
And, while this might be an unpopular viewpoint, I believe it pushes students in the wrong direction. The truth is that you basically already need a college degree in order to get employment with decent conditions. We should be making it easier for people to succeed without that "requirement," rather than taking the dastardly step of enshrining it.
If this is an unpopular viewpoint, then that fact itself is an enormous indictment of the American chattering classes' attitude towards education.
This policy in particular conjures an image in my mind of Rahm and his advisors wondering, "What is it that is stopping these kids from getting into college? Do they just not want to be productive team players in our economy?"