The underlying problem here is the insane cost of college education, which has been driven to dizzying heights -- FAR outstripping the rate of inflation -- due to federal student aid, which has removed the university from market forces.
As long as the government provides such hefty amounts of financial aid, universities can pretty much charge whatever they want, which means that most kids cannot afford tuition without government financial aid, which means that universities can pretty much charge whatever they want..........
Bingo. And also it's the same reason with Medicare that it results it higher medical costs. When people don't care how much something costs, because somebody else is paying the bill, this is what you get.
Do you apply this rationale to health care? Hefty amounts of insurance allows doctors to recommend unnecessary treatments and diagnostics and charge whatever they want.