Studies: Federal Loans Raise Costs - Community College News Now

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Studies: Federal Loans Raise Costs

by Jane S. Shaw

Federal student grants and loans increase the cost of tuition at colleges and universities, a newly published survey of scientific studies concludes.

“In 1987, then-secretary of education William J. Bennett penned an article in the New York Times entitled “Our Greedy Colleges,’” Jenna A. Robinson writes in her research paper “The Bennett Hypothesis Turns 30,” published by the James G. Martin Center for Academic Renewal in December 2017. “In it, he wrote, ‘If anything, increases in financial aid in recent years have enabled colleges and universities blithely to raise their tuitions, confident that Federal loan subsidies would help cushion the increase,’” Robinson wrote.

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