Because the cost of a degree has been separated from the market. You can get a loan to cover all of your expenses for years no matter what your course of study. Why? Because the government not only guarantees the loans, they guarantee the interest and the debt is not dischargeable in bankruptcy. It's 100% guaranteed profit for the lender no matter the degree, the credit worthiness of the student, or the size of the loan.
This. If banks were reponsible for the loans they were making, they wouldn't give them, and people wouldn't get these stupid degrees. Same effect Usury has on everything, inflating demand for shit people would never get otherwise...at that price anyway.
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