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> Federal student aid has ensured that the cost of education grows to meet the amount of loan money available. Yes, tuition prices are somewhat limited by the
by mrep 8y ago
> Federal student aid has ensured that the cost of education grows to meet the amount of loan money available.
Yes, tuition prices are somewhat limited by the amount of loan money available. However, please stop this nonsense that "the cost of education grows to meet the amount of loan money available". I went to a public state school and most people there went there to minimize their debt because they paid in state tuition which is much cheaper. Most of the out of state people went there because it was a good school and they got decent scholarships and thus didn't have to pay full price. The rest willingly chose the higher out of state fees but they could have gotten into an in state school or one that gave them a scholarship. Private schools are similar except they only give "discounts" (scholarships) to people who need it but anyone going there can choose a state school if they want.
TLDR: In classic American economics, schools price discriminate and charge the highest prices they can based on how good they are, how good the student is, and the students willingness to pay.