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I am not from the US but my understanding is that student debt only started to be a problem when the government started to guarantee it, in the 80s.

So they were priced out of interventionism.

And salaries stopped following increases of productivity after Nixon gave the final blow on the gold standard in 73. So again, priced out of interventionism.

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Student debt became a problem when the cost of college rose significantly faster than the ability to pay for it, immediately and from degree benefit. One can argue that educational bureaucracy metastasized as a byproduct of government debt guarantees, thus driving the cost curve.

I would say that, because government started guaranteeing the student debt, demand became insensitive to price.

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