| The main reason for the increase in education costs is the availability of student loans. Lenders will loan huge amounts of money to students, who have often never worked and have no assets, because the loans are almost impossible to discharge or otherwise get out of. In many cases, students qualify to borrow more money than even their parents could. State governments know that students can get student loans in pretty much all circumstances, and they use that as a justification to cut funding to state colleges -- after all, aid is available for those who need it. Colleges increase tuition to make up for the shortfall in state funding. They also need to attract students who have the means, via the loans, to attend the school of their choice. So, colleges build amenities, such as luxurious student housing and health clubs, which increase operating costs and necessitate further increases in tuition. Meanwhile, students are being told by their parents that they will have no problem paying back their loans, but that's not generally true. Their parents went to school before this vicious cycle of loans and funding emerged, and don't fully understand the burden these loans can cause for new grads, especially in non-STEM fields. The students borrow more than they ought to. This is a parable of unintended consequences. |