'Democrats increasingly support more government intervention in response to the out-of-control cost of college. But we just got even more evidence that government meddling is what produced this problem in the first place.' -Brad_Polumbo
From student debt “cancellation” to outright socializing higher education, Democrats increasingly support more government intervention in response to the out-of-control cost of college. But we just got even more evidence that government meddling is what produced this problem in the first place.examined the expansion of federal loans for graduate education that occurred in 2006, which basically removed the limits and let many students borrow up to the full cost of attending.
In typical academic understatement, the authors conclude, “Our results raise important questions about the utility of essentially uncapped government-backed loans for graduate school.”has shown the same effect for the massive federal loan programs we give out to subsidize undergraduate education, too. And the timeline of when college began to increase in cost corresponds closely with the expansion of federal subsidies.
“Back in the 1960s, you didn't have a federal student loan program, you didn't have a Pell Grant program,” higher education researcher Preston Cooper told me in a recent interview. “As federal aid has expanded, over the years, colleges have been able to capture some of that money by raising their prices.”
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