Why on God's green earth would colleges lower their prices when they have guaranteed funding via guaranteed student loans? If anyone could get a loan for a house, the same thing would happen to the housing market. Cough Cough...2008. Government placed quotas on the industry to make the "American Dream" a reality for everyone.
I get it. Government-backed student loans does indeed give opportunities for many less fortunate people. But does giving opportunities to the less fortunate, which is a much, much smaller percentage than those who are not in that category, justify making college unaffordable for the entire country? Keep in mind that most people fall into a middle category where they are not poor but still don't have enough for college and have to find a way.
And sure, call me a conspiracy theorist, but at the end of the day, the Government doesn't back student loans because they want to help. They do it because it serves their special interest groups.