Student Aid Does Lead to Tuition Inflation

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.

George Leef — George Leef is the director of research for the John William Pope Center for Higher Education Policy.

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