While I agree with you that the excess spending of higher education institutions has been a primary driver of cost growth, I would contend that decreasing state

While I agree with you that the excess spending of higher education institutions has been a primary driver of cost growth, I would contend that decreasing state spending has had a greater impact on these rising prices than federally backed student loans. The market demand for a college educated workforce has exacerbated this price pressure to cause the 5-10% year/year increases. For example, the University of Washington has sustained a state funding decrease of nearly 50% since 2009. In 1990 the funding per student was $17,000 with 82% paid by the state and the remainder by the student, in 2013 the state pays 29% and the student 71%. The demand for a college educated workforce has also increased since 1990, with the majority of middle class occupations requiring a four year degree. This demand is inelastic, and while it is true that federal student loans make up nearly 90% loans, if supplanted by private loan bodies at higher interest rates it is unlikely that the market demand would decrease.