system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5:Why does College tuition continue to increase at a rate well above the rate of inflation?
gpt
In part, because they can.  The availability of government-guaranteed student loans means that their customers have access to more money than they otherwise would, which allows colleges to increase prices.

Colleges spend the increased cost on (a) administration, (b) reduced teaching loads, (c) nicer student facilities.  (b) helps to attract faculty, which attracts students, and (c) helps attract students.  Whenever you go to a college and see a new student center with ultra-nice athletic facilities, for example, think about where the money comes from -- directly from students, but indirectly from federal student loans.

So, why does it keep going up?  Because the Feds keep increasing the amount you can borrow!   You combine that with the changes to the bankruptcy laws in '05 which prevent borrowers from being able to discharge private loans in bankruptcy, and you see a lot of money made readily available to students.