They aren't the real world. The world of education is a fantasy world propped up by fiat money printing and market distortion.
Private schools are also affected because they take public money at least almost all of them do. The also take students with "financial aid1". In order to be eligible to do those things they have to basically operate like the public institutions. They aren't without blame but the key figure causing the issues is the federal government.
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I'm not shaming students who take student aid, I took it. ↩
Footnotes