Student Loans Tuition Inflation

A cursory search leads me to believe this may actually be happening:http://www.bloomberg.com/news/articles/2015-07-09/why-is-col...http:

College is really expensive in the US because of the government's attempt to allow anyone to get in through loans.Universities know that students have to pay it back no matter what, so they can keep increasing the costs of classes and various admin fees. They already get their money up-front, because student most likely paid it through a loan, and (the university) doesn't have to worry about it being paid back (they don't have to take on any risk).We need to get rid of the

huh? there’s plenty of colleges to choose from and yet costs go up every year.to me it seems like a distortion caused by a Federal Gov that guarantees payment to universities in the form of federally backed student loans.

It's because demand is inelastic: everybody wants a university education and will pay a usurous price to get it (with government assistance)

The loans are exactly why the colleges were able to continue jacking up the prices. As with homes, people will pay as much as institutions are willing to loan them. In both cases the currently low interest rates allow the loan principal to be much higher (given that folks calculate cost based on recurring payments). If you remove the student loan system then tuition would become cheaper. However that does unfairly impact those from economically disadvantaged households.Also, in-state tuition

The high prices are a symptom. The cause is cheap student loans:Since it is easy to get a loan, people will borrow as much as needed to get to the highest tier institution that will accept them. The private ones can thus increase their prices, and lure the staff with higher salaries. Now the public institutions need to level up salaries of professors and administrators, or they will leave for the private institutions.That has been happening over the last 20 years. Remove the government gua

It's based on supply and demand. Since anyone and their dog can get a student loan, and the federal government guarantees those loans, demand for college education is basically inelastic. You can keep raising prices without losing students: they're just going to borrow more money. It's basically the same mechanism as that of subprime loans, where anyone got to buy a house they couldn't afford, except that it's federally mandated.

The idea here is that there is a feedback system causing the price of tuition to go up. Banks can lend at little risk and schools can charge a lot because students can get loans.The hypothesis is that if students can't get the loans then the schools can't charge as much and have to become leaner. Combine this with a social change in perception of "you need to go to college to be successful" and I think the idea has merits. Simplified and not the full answer, but it definit

Tuition has been increasing at a rate much greater than inflation for several decades, largely through price-insensitive loans. The idea that universities are struggling for money is not supported.We need these Unis to cut costs and administrators. Propping up waste through courting rich foreigners is not a long-term solution.

Higher education gets an absurd amount of funding. Entire generations are being saddled with lifelong, insurmountable debt because of how much universities are charging to get an education. The costs of tuition have skyrocketed at rates far above inflation. Many universities are sitting on massive piles of cash reserves. The problem is that most of that money is getting sucked up by non-academic sinks like administration.