Comment: Because colleges are

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Because colleges are

Because colleges are businesses plain and simple. When consumers have more purchasing power via a federal loan, the business - AKA the college - experiences an increase in interest from leaving highschool seniors who may not of had the benefit of an academic scholarship. With such high demand and only an X amount of slots available for incoming freshman, the college will always increase prices. They can get away with it because the demand is there even though it's artifically created by the government. The government says, "Here, take the money. You deserve a college education." This floods the education market with students who don't even know why they're going in the first place. Federal loans might give students the illusion of being able to afford college but make no mistake about it, federal loans only give colleges the green light to bump up their tuition rates...