There are obviously many reasons and factors as to why such is the case, however, one of the main reasons is something that is not so obvious to most people yet the same culprit behind the real estate bubble: easy loans.
That's right. Student loans are one of the prime factors contributing to higher costs in many colleges, similar to the way mortgages increased the prices of homes these past few years. By giving people who can't afford something a loan so that they can afford something changes their buying pattern. The future aspect of the person defaulting or being unable to pay back their loan isn't a concern to the student. The actual price of the tuition becomes less important if the student is getting a loan. Paying $50,000 a year isn't that much different than paying $10,000 a year to the student. They're still paying the same thing right now: nothing.
So by bringing non-qualified students in the same way that the real estate bubble brought in non-qualified buyers we are creating the exact same type of fiction. We are pretending that anybody can and deserves the same college education as somebody else. We are forcing college on unqualified students the same way we forced homes on unqualified buyers a few years earlier.
Let's take a step back and ask some basic questions. Can all these students really pay back these loans. How many loans have been created? Was the loaned money backed by liquid banks?
At some point there is going to have to be a correction. There is no reason that the same exact college education that was given 10 years ago, and that will be given 10 years in the future should have to cost more money. If anything IT SHOULD COST LESS! Mobile phones go down in price. Computers go down in price. You get more bang for your buck in the entire technology field. But for some reason college prices continue to go up. Perhaps it will take a professional college financier to explain such a scenario. Yeah, that must be it!