[j15t]

>It's not just a question of there being a huge pool of money, you can buy a car with loans and car prices haven't skyrocketed.

The obvious difference is that car loans are not Federally issued and defaults are possible. Hence creditors have to issue loans in a prudent manner or else they will incur a loss. Not everyone is able to acquire a car loan, and interest rates can be very high.

These incentives do not exist in the student loan market and thereby subsidizing demand. Students become price inelastic.