So, how does the government help? Pressure schools to reduce costs (like they do with some industries)? Encourage non-traditional education or alternatives to 4-year schools? Naw... They offer to loan students money. Lots and lots of it. Take a look at this chart:
Careful, that's not a ten-year chart, that's a two-year chart.
See this blog entry for some good information on this topic.
Colleges can keep raising prices, despite the recession, because the government keeps lending students more money to pay them.And remember, student loans are not discharged in a bankruptcy. Indentured servants had it better...
According to a report cited by Anne Marie Chaker in the Wall Street Journal on Thursday, the government will lend students $75.1 billion to pay for college this year, up a spectacular 25 percent compared with last year.
But the extra credit isn’t benefiting students. It’s just inflating the price of their education, burying them under a bigger pile of debt despite stagnant wage growth and poorer employment prospects.