From a piece in Opinion Journal, a quote:
Ironically, these government handouts are creating the tuition problem. Tuition has risen about three percentage points faster than inflation every year for the past quarter-century. At the same time, the feds have put more and more money behind student loans and other financial aid. The government is slowly becoming a third-party tuition payer, with all the price distortions one would expect. Every time tuition rises, the government makes up the difference; colleges thus cheerfully raise tuition (and budgets), knowing the government will step in.
and
Our financial-aid system also hurts middle-class applicants. Parents who have saved money for their child's tuition quickly find that, by the strange calculus of financial aid, they are charged more for college tuition than if they had blown their savings on a bigger house.
Read the whole thing.