<p>
</p>
<p>I’m not sure what you are saying here… Pell’s are grants which haven’t been increased, which is what I have been saying. It is the “loans” that have been increasing through loan subsidies which is increasing the funds available for purchasing college educational services.</p>
<p>
I agree with you here that this is also an effect of increased loan availability.</p>
<p>
Each school is providing a “unique” product which like any other economic good does have substitutes, just like any house is unique (although in many subdivisions they are very close - LOL). There are lots of areas where houses are vacant and readily avaiable (think Flint Michigan) just like there are plenty of schools that have open walk-up enrollment and plenty of classroom space. Not everyone wants to live in Flint, nor does everyone want to go to these universities. You’ll probably notice that there aren’t too many new home permits pulled in Flint and these undersubscribed colleges are not building new classroom space either.</p>