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Being not American, and given that if we assume that school are business like any others I would be curious to know why the university fees has inflated so much
by flashyfaffe2 7y ago
Being not American, and given that if we assume that school are business like any others I would be curious to know why the university fees has inflated so much over the last decades. Shouldn't we expect price decreasing due to competition? Any law or anything else explaining this?
- dodobirdlord 7y agoFederal student loan guarantees and subsidies complicate the economics. Lenders are prepared to provide larger and riskier loans than the marker would otherwise support. Universities can handle only a limited number of students, so they have no incentive to lower prices until it would result in a marginal slot going unfilled.
- dragonwriter 7y ago> Lenders are prepared to provide larger and riskier loans than the marker would otherwise support. The only lender that has benefitted from federal guarantees/subsidies for a number of years is...the US Department of Education. Whose lending is directed by the same laws that provide the guarantees and subsidies, and so are not incentivized by them.