Comment: true, plus

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true, plus

by injecting all that money into student loans, you increase demand tremendously for those services, while the College's capital base has not increased sufficiently to increase supply accordingly.

Basically, you have a huge pool of students who otherwise would not have been students, due to cost, while the necessary expansion of college services has not happened.

Contrast this with a free market version of this issue:
Fewer people could afford to go to College. (This is where most people say "Oh that's terrible"). So demand is low, and thus prices must fall in order to fill seats in lecture rooms. The College's inevitably want to earn more money, like any private business does, and so explore ways to bring new students in. From their view, it is obvious that costs are still too high, so they explore ways to make their college more efficient, and thus drop student costs even further. If they are unsuccessful or reluctant in this effort, it will become obvious to potential investors/entrepreneurs that, looking out at all the potential students who are currently unable to afford college, there is a good profit-earning potential. The question for these entrepreneurs is: How do we make quality College classes available and affordable to these students? The answer lies in creating a more efficient model for College, than currently exists. For a current example, Internet College classes could well be the answer. You can charge much lower fees, service more students, and potentially teach all over the world. There is no limit (potentially) to how many seats would be (and are) available in an internet classroom.

As we all well know, people who still believe government is the only answer (or even the right answer), are unfortunately missing the point.

"Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, give me liberty or give me death!" - Patrick Henry