Student Aid Does Lead to Tuition Inflation

by George Leef

Cato’s Neal McCluskey has a very useful post here on the research that has been done on the relationship between government aid for students and the rising cost of going to college.

If the feds had a program to aid consumers of, oh, refrigerators, would anyone doubt that refrigerator makers would understand that such aid allowed them to raise prices? But higher ed is non-profit, so college leaders wouldn’t do such a thing.