As the economy de-industrializes (in other words, collapses), people see bureaucrats of all types as the only ones with any real security. Since credentials are the key to bureaucratic employment, the price of credentials skyrockets.
7-10% of the population, AT MOST, are capable of baccalaureate work. Less than 50% (probably less than 30%) are capable of 11th and 12th grade work. The majority of children should leave school after 8th grade, any money spent on their education after that is money wasted.
Those are the facts. "Education" is indeed a bubble, a massive one, and it's certain to collapse.
When and how? Those are the questions.
Job security and pensions. Nothing else matters, and it'll never end as long as they can get away with it.
Another reason is the kids expect every building to look like a 5 star hotel and the colleges are selling themselves to the devil in upgrades and advertising.
The schools, however will continue to be indoctrination centers for all kids with this government money. Also, the government will be able to legally brown shirt those with outstanding loans.
Does that include the cost of textbooks? That’s another part of the college ripoff.
Subsidies have protected the education industry from the realities of supply and demand. As the price has gone up, the subsidies have allowed the marginal consumer to remain in the market, so there has been no downward pressure on prices. As the price continues to rise, the subsidies have also risen, to maintain more and more marginal consumers in an education market they could never afford to be in on their own.
But this can only go on so long. Eventually the Gravy Train reaches the last station on the line. And when it does, it will all fall apart very quickly.