Originally Posted by JonLaw
My point is that the federal government is the *source* of the college arms race.

Massive amounts of debt that has no business existing in the first place are being provided to colleges and universities through students.

There are plenty of private organizations all too happy to provide college debt, thanks to the recent changes in bankruptcy laws that render the debt inescapable. They just do so at higher rates of return than the government is currently charging. The market responds rationally to the cheaper rate.