Shocker: Federal financial aid drives up tuition costs

[TheFoyeEffect]

I knew that the Bennett Hypothesis was probably right, but I would have never guessed that it would be this pronounced.

The researchers find specifically that a dollar of added Pell Grants or an added dollar of subsidized direct loans translate to 55 cents and 65 cents in higher tuition, respectively.

The study also found that the effect was most pronounced on the most expensive institutions.

http://www.washingtonexaminer.com/article/2567707

 

[LizReed]

Good article. Pretty well-known for a while now.

 

[NickleDimer]

So helping poor people only hurts poor people?

 

[TheFoyeEffect]

Not necessarily. It found less of an effect for non-subsidized loans.