1. A large increase in demand for College. I could imagine this may be, in part, due to more accessible student loans. But it appears that many factors have come into play, and the main one is the perception that you cannot get a liveable wage in this country without a college degree. 2. Less funding from state governments 3. Increased spending in administration and student services unrelated to education.
Here are the sources I've read through so far. https://www.bankrate.com/loans/student-loans/why-is-college-... https://manhattan.institute/article/a-new-approach-for-curbi...
In 1 you're talking about a self-reinforcing effect. "I have to put on makeup to look pretty because everyone puts on makeup to look pretty". When everyone believes it, it becomes true.
All your drivers cannot cause a price increase if an 18 to 25 year old cannot get unlimited funding from a lender to make a stupid decision.
You are boosting your income by exploiting students through usury.
Lets say there is no government, then where was the 'competitive' pressure? How does government loans take away competition? Did they close schools to eliminate the competition?
Common sense is the rallying cry of people who cannot backup their claim by other means.
Government (taxpayers) underwrite unlimited amounts to uninformed buyers paying informed sellers.
I am a seller (college boss), and I can boost my own income, and I know I have no competitive pressure to keep prices down, so why not increase the college budget and spending, hence justifying tuition increases.