There’s probably more at play, but the govt is willing to back companies offering loans to cover higher and higher tuition costs, so said companies haven’t got to worry if the loans default or don’t return the full amount - it’s about setting an exorbitant “graduate tax” to keep a permanent stream of guaranteed income for as long as possible.

Higher loans means more repayments, and more money for universities, so they both raise tuition higher and higher to meet the limits of students. as long as banks or govt don’t ever ask for their loans back (which they won’t because it’ll collapse the whole system and possibly the economy with it) the price can inflate at much at it likes.

the same is at play in the UK, only we have “tuition caps” that every university course sets their prices to because there is simply no benefit to charging less, and no downside to charging more. Everyone can get a loan, no one is denied, and the government backs this process because it is essentially being held at ransom.

I know I turned it into a rant about UK education but the financial systems feel very similar. There’s simply too much money held up in a make believe cycle of IOUs that would immediately collapse a huge chunk of the American system if anyone willingly let it pop.

The only problem with this is that eventually it might just pop on its own, and no one will be ready.