Who would have guessed.
Seriously though, the young borrowers aren't price sensitive so the cost of the things they're buying spikes.
The dynamic here is quite simple and obvious (though maybe only in hindsight).
It's econ 101 that markets can produce rational allocation of resources but only if they are involve people with the information and time to determine the outcome and those people are working with their own money. A system where the state "gives"/"loans" your customers money and then forces them to spend that money on you produces a industry that has neither the discipline of skin-in-the-game markets nor the discipline of state regulation.
This is why fewer students are attending small, private, expensive colleges.
The dynamic is not that simple. There are a multitude of reasons behind the increase in the cost of postsecondary education. Waving it away as young people just being young people is sort of silly.
They can borrow the money all by themselves.
Independent student loan limit is $57,500 total. First year cap $9,500.
https://studentaid.gov/understand-aid/types/loans/subsidized...
Most people borrow money from private lenders as well.