In large part, it IS government interference that is responsible for education inflation, which is higher than healthcare, food, and energy inflation. The cost of a college education has been increasing ever since the government got involved in the student loan business. The schools can jack up tuition knowing that they will get their money. The government knows that it will get repaid (or the banks know when we are talking about private student loans) because school loans ARE NOT DISCHARGEABLE IN BANKRUPTCY.
It is a vicious cycle and holding down interest rates artificially won’t really solve the problem. If you have to pay 7% interest on an education that costs you only $50,000, you are still getting a better deal than a $200,000 education at 3%.