<p>I think we’re all missing the root of the problem. Why is college so expensive now?</p>
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<p>States subsidizing less of the operating costs (for public schools), and competition among colleges keeping colleges in a perpetual state of “keeping up with the joneses”.</p>
<p>I think the rankings are partly to blame for that last part since they force colleges to game the system in order to attract more students.</p>
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<p>Because people will pay so why not charge more and more. It’s like asking why iPhones are so expensive.</p>
<p>I think some people are missing the point. </p>
<p>This is a classic bubble. Banks are lending to anyone because there is “no risk” ( in the housing bubble, mortgage lenders believed prices would increase forever and that their loan against the house value using the house as collateral was “risk free”</p>
<p>Yes, if students could forgo payment through bankruptcy ( as many did in the 70s) You could take the money, get a degree, declare bankruptcy, and in 7 years, no problem you could still buy a house when most people began to do that anyway.</p>
<p>So the banks said if you want us to start lending to these credit risky students you need to ELIMINATE the risk. All of a sudden, easy money and just like the housing during the bubble, the cost of the education flies through the roof. </p>
<p>If we change the laws somehow and make it risky again ( as someone posted, no one would lend) the schools would have no one who could attend and the prices will fall…</p>
<p>Classic bubble, classic way to pop it…</p>