> Because supply of money is basically unlimited, schools can increase tuition each year.

While I am not an expert on the matter, I do work at a college and in my experience there is more to it than that.

Just to name one, when I went to school in the late 70's we lived in cinder block dorms and ate in a cafeteria that basically had one dinner choice, while if we offered that today students would not come here. All that stuff costs money, also. Plenty of blame to go around.

Room and board is generally separate from tuition. The college I went to charged obscene amounts for it's dorms. You could get a studio apartment to yourself twice the size within 15 minutes of campus for about the same price as having to share a tiny dorm room. The on-campus apartments were worse, since the amount the four people sharing an apartment were paying combined would be enough to rent a good sized house nearby with money left over. I'm sure they get enough charging for the rooms that it isn't affecting tuition price.