The availability of alot of easy, cheap loans was a big driver of the insane college tuition increases in the 90s and 2000s.
The reason college costs so much is that the things that the college consumer expects from a college cost so much. Staff, facilities, programming … it all costs money, and lots of it. Higher education does not pay particularly well for most staff members, but pay + benefits add up. It’s a very labor intensive proposition to educate students. Computer labs, writing centers, clubs, dorms that are at least halfway decent, staffing - including cleaning - for the dorms, public safety, mental health services, enrollment & student services, internet all over campus, etc, etc, etc. Every single thing that is needed, as well as all the things that are wanted, cost money. Federal regulations require staff for compliance. On and on. It is very expensive to run a college.