In the US, both college education and healthcare have become enormous taxpayer wealth extraction schemes. Everyone has a "right" to education and healthcare, therefore we should subsidize it with taxpayer money. That is as far as the politics go. We have stupidly funded the demand side of the equation to where both education and healthcare are incredibly bloated behemoths capable of absorbing all the money thrown at…
Schools compete not on price but on other factors. That's why they want to build massively expensive campuses and elaborate facilities, because that is what students base their decisions on. If schools competed on price, everyone would be going to state colleges c̶o̶m̶m̶u̶n̶i̶t̶y̶ ̶c̶o̶l̶l̶e̶g̶e̶. I'm not sure how you compel schools to compete on price, because the consumers don't care about price. They'd rather get…
So, people picked the 'best' school they could get into. Not just for the 'experience', but to make sure they got the best education they could and opened as many doors as possible. Because you don't really get a do-over.