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