Yes, government-backed loans reduce the apparent cost of higher education, increasing the amount people are willing to pay, driving up the costs, and reducing access to people who are unwilling to take the loans.

http://www.economist.com/node/21559618 quoting a research paper:

"With all factors present, net tuition increases from $6,100 to $12,559. As column 4 demonstrates, the demand shocks — which consist mostly of changes in financial aid — account for the lion’s share of the higher tuition."

And then:

"so much of the subsidy is translated into higher tuition that enrollment doesn’t increase! What does happen is that students take on more debt, which many of them can’t pay."