Reason cites Vice President for Strategy Iain Murray on how federal regulations affect student loans:
Iain Murray, the vice president for strategy at the Competitive Enterprise Institute, believes that complex federal regulations surrounding student loans have created a landscape that allows this sort of behavior to proliferate.
“One of the problems with areas where there are complex federal regulations, as there are with student financial aid, is that it makes it much more difficult for market competition to work,” Murray told Reason in an email. “It’s easier to see price competition at work when there are fewer rules. I can’t say whether or not there has been price-fixing in this area, but it’d be easier to tell if that’s the case were federal rules less complicated.”