I think having remedial, junior high school math, reading and writing classes at universities says a lot about the state of our educational system. 
The way I see it is that we should hold them back when they are younger. Can't do basic reading and math when you finish 1st grade, great you get a do-over. It is just plain incomprehensible that kids can get to high school and still be functionally illiterate. My friend is a high school math teacher with Teach for America, and she has some kids who got to high school who are still struggling with basic arithmetic.