Inflation is the increase in monetary base. If a student loan is created from thin air, and it is, it cause the inflation. Just like home mortgages, the new money created is put directly into one market. In that case it was houses and when the bubble busted the price went down.
New money is created, inflation, to make a student loan and put directly into one market...colleges. The inflation is targeted into a single source and that is why college prices go up at rates that are double of the rest of the CPI.
What is the increase in college prices, 12-20%
What is the CPI....2.3%
Just like the leveraged tech bubble of the nineties. Just like the S&L bubble of the eighties.
Heck, back in 1920 the fed was creating new money and credit and leveraging stocks on Wall Street.....all that inflation targeted into one thing, stocks. The prices of stock went up but their value did not, the result was the bubble burst.
What causes college prices to rise at higher rates than other goods and services.....targeted inflation from creating credit from thin air and injecting into colleges.
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