[Newgy]

Actually the key is to get rid of government loan subsidies. They just bid up tuition and get capitalized into non-essentials like sparkling student centers.

It's no coincidence that college prices have risen as the government has increased their loan subsidies.

[JoeAltmaier]

Cart before the horse! Any evidence of cause-and-effect here? Its also true that "government loan subsidies have increased to offset rising college prices".

[jonhohle]

If you agree with Austrian economics, this follows the typical business cycle. Cheap money, inflated prices, credit contraction, bust.

In the last 5 years we've seen this happen at least three times:

  * housing
  * solar
  * equities

the insidious thing about student loans is that the borrower has little to no credit history and cannot default on the debt. A large portion of this money (40% iirc) is going to for profit institutions which have policies in place to keep a student enrolled (when any respected school would kick the the student out for low academic performance or issues of ethical conduct).

[Locke1689]

If you agree with Austrian economics,

Big if.

[gte910h]

That's' theory, not evidence.