Here we have a college student asking him a question about free market interference. Remember the concept of a free market? That is where supply and demand determine price. Goods or services cost a certain amount to produce. A customer wants a good or service and sets a value on that commodity to them. That is what they are willing to pay. When producer and consumer agree, we have a deal. If the producer demands too much, the consumer won't buy. If the consumer won't offer enough in exchange, the producer won't sell.
Eventually supply and demand will move into balance. High priced goods in short supply will drive capital investment into production. Supply will rise and price will go down until the market is satiated or the producer doesn't see potential for reasonable profit.
The student apparently understands that when a third party who neither produces nor consumes will agree to pay the bill, there is no restraint on the consumer to limit prices nor is there constraint on the producer to keep prices within reasonable ranges.
Biden Obfuscates on Tuition Costs
What truly merits my disdain for the vice-President is the rambling, nonsensical, ballet of blather which he emits in an attempt to sound like he's got a clue:
By the way, government subsidies have impacted upon rising tuition costs. It's a conundrum here. But if we went the rate your view of the free market route what we would have done is we would have not of done that. We would not have increased pell grants, for example. And there would be 9 million fewer students in college today.The only reasonable response to a statement like that is, "What???"
And there would be hundreds of thousands and millions of students who would not be in college who don't get Pell grants because there was no ability for them to borrow money through Perkins loans and/or have the tax deduction.
So you are right, in a pure free-market the college tuition would have to be lower because there would be fewer people going to school, they wouldn't have as much coming in. But the end result is we would probably have -- we go for the better part, half a generation, of going 16th in the world maybe down to 20th in the world.