Who's Profiting From $1.2 Trillion of Federal Student Loans? “There is a large student-loan industrial complex. Rising costs of college and flat family incomes have created enormous business opportunity for every step of the loan process.”

This might get buried, when it comes to high tuition costs, it more has to do with the type of education we expect to receive in the United States. American universities are essentially an all inclusive package The United States has a very active student life with a big student union at the center. You have clubs, sporting events, entertainment, greek life, dining halls and student housing, and every other activity under the sun. My alma mater had their own movie theaters and played free movies every night. From new releases to the classics. It was fantastic. And a hundred other 'free' things to make student life, for a lack of better words, absolutely fantastic. American universities also tend to provide free services like healthcare, childcare, counseling services, and safety resources, like safe walk people, among other things. In comparison most European universities, where tuition is cheap or free, are very stripped down. Student life and other services aren't a priority. Even things like academic advising or office hours aren't nearly as intimate as they are in the United States. In Europe areas of study are reduced and degree programs aren't as well rounded. They have more focus on your major. Most bachelors degree should only take about 3 years over seas. Class sizes tend to be larger and although it is guided, learning tends to be more independent. It's more reading intensive. So I agree that the American universities are very much bloated, but not for why you think. It's the mindset that higher education should include all these other things. It's very expensive, but the result is United States dominating the global rankings in higher education. It also allows the United States to attract the best talent. Is it very bloated, sure, and it's a valid argument to say 'hey we need to strip down some universities so they're more affordable.' Absolutely, I agree. But will everyone who wants reduced or free tuition really accept reduced services? I'm not so sure.

/r/news Thread Link - bloomberg.com