As predicted, the "pay the players" chorus has begun.
If this is the solution, it needs to become a business transaction. As such, there should be 1) a contract between player & school (not the coach) to protect each parties' interests; 2) a signing bonus paid based on the player's past performance (3-star Sam Miller would have commanded more upfront cash than 2-star X Williams); 3) annual reassessment of quality of service (Sam Miller's salary goes down, while X Williams' salary goes up); 4) only a portion of salary is available for immediate spending, a significant portion goes into an escrow account for disbursement at completion of service contract; 5) full federal/state/FICA taxation; 6) institution of 401K & match.
Time for everyone to grow up a little.