One would think that is true, that tuition is seeking a new equilibrium based on: subsidized lending; lack of bankruptcy protection from student loans; desire o

One would think that is true, that tuition is seeking a new equilibrium based on: subsidized lending; lack of bankruptcy protection from student loans; desire of high school grads to enroll in university. However, we do not seem to have reached a tuition plateau yet. Further, the expensive tastes of both public and private institutions, and the leverage undertaken by students, means that this system overall is fragile. If there is a rapid change in economic circumstances, we will find that overlevered students (including those that we thought had "reasonable" debt loads) and high-cost institutions will fail at an alarming rate. Endowments will shrink overnight. States will slash funding for state universities / research. Tuition will not possibly be able to come down fast enough, in those circumstances. Until then -- business as usual!