This is a huge issue because of "price insensitive" buyers. With a large number of people shopping for the biggest name university possible, not the best value,

This is a huge issue because of "price insensitive" buyers. With a large number of people shopping for the biggest name university possible, not the best value, loan availability significantly affects the supply curve. When faced with an irrational consumer, unfortunately, the rational course of action for a university is to spend money on prestige building items like fancy architecture and football, rather than trying to provide the best education for the money.