Why do we talk about student loans instead of predatory pricing practices of college?

With as much attention graduates with high student loans are getting, I think there should be equal, if not more, attention to the root cause, which are the predatory pricing practices of college education.

First, high price increases that has been 2-3x inflation for decades. What other business could get away with that? And, why? The cost of every input going into providing a college education should have kept pace with inflation, so where is all the extra money going?

Second, through FAFSA, colleges gain a negotiating advantage that few businesses enjoy, allowing it to set the maximum price for each student. Think about walking into a car dealership and before you talk price, you had to disclose your full financial position to the dealer. That’s what FAFSA does for colleges, yet they disguise it as trying to make sure they are helping you the best they can. In the business world, this is called price discrimination.

Why are so many students choosing to take out debt they will have a hard time repaying on what is supposed to be one of the “best investments that can be made?”



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