The student loan issue is kinda like the Health Insurance issue in America (strictly an opinion). Prices are driven up because colleges can charge whatever they

The student loan issue is kinda like the Health Insurance issue in America (strictly an opinion). Prices are driven up because colleges can charge whatever they wish and the students pay for it in the form of loans mostly backed by the Government (STAFFORD etc.). Colleges have no incentive to reduce tuition cost because the money flows either way (student or the govt. ). Remove the option of getting subsidized/backed by the Govt, the colleges will either have to reduce the fee or be at the risk of not getting enrollments and ultimately lose money. They don't want that. No one does. Similarly, remove the middleman i.e health insurance companies, doctors/hospitals can directly charge a patient and voila, a visit to get stitches will not be billed at $1000.