[mark-r]

This is the fallacy in government providing low-cost loans to everyone. Unless the supply of colleges increases, it just ends up increasing demand for the same supply, driving up prices - and producing a boatload of graduates with mortgage-sized student loans. All on the assumption that the degree will give them increased earning power, which is increasingly unlikely in today's economy.

[TronPaul_]

It's not just the fact that they're low-cost loans. They're almost zero-risk loans (you can not declare bankruptcy on student loans), which benefits lenders and encourages schools to increase prices.