Government funding increases costs

[Warstring]

I have been looking at online colleges lately. Has anyone ever noticed that 75% of colleges have prices set to, or around, the maximum student aid amounts? If the government quit giving hand outs, wouldn't these institutions be forced to charge acceptable prices. Another example, if car insurance was not a law, would this not drive the cost down by depleting the demand. (Of course people will still want insurance, but it's would no longer be a forced product) Seems to be something scandalous going on.

[MAM]

LOL That is one of the reasons I stand by my comment that college is a rip.

[State-God]

College costs are the perfect example of Mises' Cycle of Intervention; the government lowers the price of college, which increases demand, which drives up prices, the government lowers the price of college, which increases demand, which drives up prices....ad infinitum until the government nationalizes all colleges.

[SinCityVoluntaryist]

 Government aid has been the single biggest factor to rising tuition costs. The colleges think that if students are getting assistance, they can jack up their prices. They have no market incentive to compete.

 You should go on Youtube and watch a series called The College Conspiracy.

[Tear-Down-the-Wall]

1. Students need money for college.
2. The government gives out loans to anybody at artificially cheap rates.
3. Colleges raise their tuition rates.
4. Students need money for college.

Is it just me or is this just a warped subsidy program?

[MAM]

If by warped you mean that it is a subsidy program that gives it's money indirectly, then yes.

Every where the State goes misery is sure to follow.

[oooorgle]

You are not doing yourself any credit by accumulating "credit" which is actually just a pretty word they use for DEBT.. You know like "war is peace", "ignorance is strength", "slavery is freedom", theft is now called taxation, extortion and sacrifice, called the social contract.