[red-iron-pine]

if kids couldn't get loans, they would have to compete on price.

as it stands now, there is no economic incentive to compete on price.

[SideQuark]

Schools most certainly compete for students, and a major factor is price.

Loans are not some boogey man whose simple presence suddenly throws out all cost consciousness.

If you look at surveys of biggest concerns about students (and their parents) selecting colleges, cost is the biggest factor (42% of them put this as #1 in the survey I'm looking at).

So no, loans are not letting prices run free by any means.