http://inflationdata.com/inflation/inflation_articles/Education_Inflation.asp
Yet, the main reason tuition continues to rise is a dramatic change
that took place regarding the Federal Stafford Loan more than a decade
ago. When Uncle Sam opened the floodgates to government-backed student
loans without parent income restrictions in 1992, colleges welcomed
the news with open arms. The sudden injection of millions of
additional aid dollars only furthered tuition increases. Add to that
the government’s continued promotion of the Stafford Loan as a
low-cost program, and you have the formula for hyperinflationary
costs.

Here are the enrollment stats:

http://www.census.gov/compendia/statab/2012/tables/12s0278.pdf


.

On Wed, Jun 13, 2012 at 3:12 PM, Cameron Childress <[email protected]> wrote:
>
> On Wed, Jun 13, 2012 at 3:01 PM, GMoney <[email protected]> wrote:
>
>> I see your point. The subsidization interrupts the normal reduction
>> in demand that would usually accompany the rise in price.
>
>
> It would interrupt a free market, but since it's not a free market, it's
> not interrupting anything. I don't think a pure free market works in
> education, but there are more than two choices here.
>
> Do you believe that there is a bubble?
> If so, how would you reduce defaults on student loans?
> Do you favor a bailout?
>
> -Cameron
>
> ....
>
>
> 

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