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Because of government subsidies. The government subsidizes college prices by backing student loans. This creates a vicious circle. Colleges raise their prices,
by Rury 3y ago
Because of government subsidies. The government subsidizes college prices by backing student loans. This creates a vicious circle. Colleges raise their prices, the government ensures those prices can be met, and students are on the hook for it.
This is also ultimately why house prices are high. The government subsidizes house prices by backing mortgage debt.
- lupire 3y agoGovernment also donates tax on mortgage interest to home sellers.
- latency-guy2 3y agoBecause the government still wins no matter what in this arrangement. Property owners are a captive audience, government can siphon their money almost on a whim. It is free money.
- bandrami 3y agoThis at least notionally stopped in 2018, though you could argue it's hidden in the larger standard deduction.
- seanmcdirmid 3y agoIt’s coming back as the trump tax cuts for non-companies expire with little hope of being renewed.