This NYT article discusses why both for-profit & non-profit schools jack their tuition up and graduate students who wont be able to find a job.
The following quote from the article summarizes what allows schools to do this:
In 2006, Congress extended the federal Direct PLUS Loan program to allow a graduate or professional student to borrow the full amount of tuition, no matter how high, and living expenses. The idea was to give more people access to higher education and thus, in theory, higher lifetime earnings. But broader access doesn’t mean much if degrees lead not to well-paying jobs but to heavy debt burdens. That is all too often the result with PLUS loans.
What’s happening here seems to be, in part, true for colleges. Who’s responsibility is it to present students with a current, true, blunt and comprehensive view of what loans, schools, career and desire really mean?
If schools are fudging with the numbers, they clearly know that they’re doing something wrong. Schools and students shouldn’t receive federal loans until the school can actually produce a 67% field-related employment rate for their students.