This is a completely wrong explanation for why college education is so expensive now.

It speaks to the symptoms, not the causes.

The actual, real cause (at least the primary one) is that student loans became more widely available, sparking inflation and with it competition among schools. There are other factors, but that is by far the primary one.

Inflation in specific markets or in general is caused by an abundance of money. More money chasing roughly the same product (an education) means prices go up. Some of that money —  perhaps even most of it – gets channeled into less-than-useful avenues, just as McMansions did during the influx of easy loan money in the housing boom.

Those who don’t understand basic economics are doomed often to not understand much else.