The relationship between student loans and tuition prices has always been the other way around - schools are more expensive so people take out larger loans. Go

The relationship between student loans and tuition prices has always been the other way around - schools are more expensive so people take out larger loans. Government subsidies for student loans are comically low compared to actual tuition these days and have barely been keeping up - private student loans have always been available and the limit has always been based on creditworthiness of borrowers as opposed to government policy. The idea that student loans leads to higher tuition prices has always been a politically motivated talking point from the right as opposed to something based in reality. Going to college or often going to as good a school as you can get into and afford is considered more important than ever before and disposable income and wealth among the upper middle class in the US have been going up significantly, not to mention among the global elites who see US colleges as status goods. On the supply side, prestigious institutions are hardly expanding their capacity for fear of losing prestige and school administrations are becoming increasingly market-savvy and less willing to charge less than below-market prices for otherwise wealthy students and their parents.