[zaroth]

The problem is a massive taxpayer subsidy for wealthy institutions that don’t need it.

The important point is who is benefiting from the subsidy? Just like the Federal tax credit for EVs benefit Tesla not the consumer, so too do student load subsidies benefit the universities, not the student.

When the Fed steps in to pay a portion of a consumer’s bill, if the supplier isn’t regulated, the supplier simply increases their prices exactly in line with the subsidy.

Consumers have a price they will bear, and that price is NET of any subsidies. It doesn’t really matter who technically “receives” the subsidy, directly to the supplier or to the consumer after the fact, because the purchasing decision works out the same either way if the supplier is free to increase prices.