Why is it essential for the government to regulate the fee structure in educational institutions?

Question

Accepted Answer

Education results in external benefits that have a long term impact. Any harm done due to lack of proper educational facilities is irreversible. Moreover, individuals lack proper information about the quality of services and their costs. This situation can be misused by providers of education who might acquire monopoly power and control. It is, thus, essential for the government to regulate the fee structure in educational institutions.