New Study: The Main Thing Making College Crazy Expensive Is Student Loans
21st December 2015
A new paper from the National Bureau of Economic Research found yet more evidence for the notion that skyrocketing college tuition costs are the result of all-too-generous student loan policies.
The study, authored by Grey Gordon and Aaron Hedlund, used a computer model to measure the effects of various economic forces on college costs. According to the model, no factor had more to do with rising tuition prices than loan subsidies.
“Looking at individual factors, we find that expansions in borrowing limits drive 40% of the tuition jump and represent the single most important factor,” wrote the study’s authors.