Why has college gotten so expensive in the last 30 years? Probably because the government handed them a blank check in 1993.

2020-09-01 Andrew Ghobrial

the federal government pays the universities/colleges up front, and the student then owes the government that money.

This represented a large shift in the alignment of incentives. When the loans come from the federal gov, there’s much less pressure on schools to compete on price.