HIGHER EDUCATION BUBBLE UPDATE: The Federal Role In Pricing:

Federal efforts in the past have focused on shining a spotlight on institutions with the highest rates of tuition growth and exhorting college officials to do more to restrain their spending growth and rein in their price increases. Recent news stories indicate that these largely symbolic approaches will continue to dominate the debate as the focus seems to be on extolling the virtues of those schools or states that freeze or reduce their tuition levels, move to three-year degrees, measure learning outcomes, or find ways to use technology to lower their costs per student and hopefully their prices

But these efforts are unlikely to yield satisfactory results, just as previous efforts have failed to slow cost and price growth or to reduce the amount students must borrow to pay for their education and related expenses. They will continue to fail unless the aim is to reshape the relationship between governments and institutions and the rules that determine how much students can and do borrow. Federal and state officials must recognize that the signals embedded in a number of policies have contributed to the past growth in costs, prices and student debt — and then do something about it.

We’re not serious enough about that yet.