Increasing tuition costs are largely held to be at fault for rising levels of debt. However, the cause of rising tuition is subject to debate. Some believe that public subsidies have encouraged colleges to avail themselves of the “free money” and jack up tuition prices. Others say it is the competition among institutions to build the most expensive and cutting-edge amenities on campus.
"We're at a really interesting and troubling point where student debt has become sort of normalized," Mark Huelsman, a senior policy analyst at the think tank Demos, told Mic. "Tuition used to be low enough and grant aid used to be high enough that total cost of attendance at higher university was manageable with a summer job."
In FY 2014, per-student state appropriations for higher education were 24 percent below the funding level in 1989. The result, also shown in the chart, is that net tuition revenue (the tuition received by public colleges and universities after grant aid is subtracted) has more than doubled during this period. Considering that three-quarters of all undergraduates are enrolled in public institutions, it’s not surprising that this increase in tuition prices has led to a large increase in student loan borrowing.