Comment Re:The real reason (Score 2) 168
That's sort of the popular narrative, but it's not really a great explanation. The underlying costs of college have increased far faster than the inflation rate. There are a few reasons for this: (1) college is labor-intensive, and the cost of labor has increased faster than the inflation rate, (2) colleges have had a large run-up in the number of administrators, further increasing costs, (3) colleges have gone on an amenity-building spree, so the experience that today's students get is far nicer than what their boomer parents got.
Underlying those is the easy availability of student loans combined with having a 17-year-old student making a decision to borrow tens or hundreds of thousands of dollars. Colleges have discovered that 17-year-old students are perfectly happy to borrow a lot of money to buy a great college experience.
Yes, it's true that US states tend to subsidize a smaller portion of college costs than they used to. But, we've seen the price run-up both in public AND private schools. And, those private schools never had the government subsidies.
Consider what would happen if the Department of Education were to say "If your annual tuition + mandatory costs is above $X, then we won't provide student loans for students at your school"? I'm guessing you'd see a mad rush of schools to get their tuition costs down below $X. They might cancel construction of a new student union, or get rid of a number of administrators, or even cancel less popular academic programs to do so. But, they'd get there. That's the sort of belt-tightening that every business does, but US universities have largely been protected from.