Why has college gotten so expensive in the last 30 years? A blank check in 1993

Re:Why has college gotten so expensive in the last 30 years?... by chemag on Tuesday September 01, 2020 @09:24PM (#24349089)

I had the same thought. My hunch is that the difference is friction. In both cases, there's money going from the Feds to the University (100% probability) and money going from the student to the Feds (<100% prob).

<1993: there's a bank in the middle. If the student cannot pay, the bank has to do the paperwork to get paid by the Feds. Note that the profit for the bank is limited.

>1993: no bank in the middle. University gets paid right away. Zero risk for them

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Re:Why has college gotten so expensive in the last 30 years?... by mixmastamyk on Friday September 04, 2020 @09:59PM (#24380800)

Yes, presumably Uncle Sam cares less about making a sound loan in the first place. It is also able to create money out of thin air—in other words, (symbolically) infinite resources.

Getting paid upfront, instead of years later after tons of paperwork, can only accelerate the process.

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