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[–] 13 points 4 months ago (3 children)

State governments realized they could reduce their funding towards universities (or keep it fixed while it devalues due to inflation) and push the cost onto students. Administration has also exploded in numbers. Many get paid much more than faculty. Universities have also expanded services and features to make students want to come. Universities can’t raise prices higher than students are willing to pay. Note students are also not guaranteed to get federal loans plus there are limits. Private loans aren’t guaranteed either but have a variety of programs.

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  • [–] 4 points 4 months ago (1 child)

    The guarantees for student loans actually go the other way - the guarantee is for the lender. Given the amounts people generally need for an education, along with a complete lack of income, students wouldn’t be able to get a loan of sufficient size without government stepping in as a backstop.

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