Why Increased Access to Student Loans Is Mostly Just Good for Greedy Colleges

greedy colleges
For every $1 of increased access to federal student loans, the colleges capture 60% of it through tuition hikes, which pay for critical spending such as the “University of Phoenix” NFL stadium

A paper by the NY Fed that came out recently should embarrass our nation’s colleges and universities. The researchers found that whenever the federal government increases access to subsidized or unsubsidized student loans, colleges take away the majority of this extra help through tuition increases. For every $1 of extra aid intended to help needy students, universities take away 60 cents of it through increasing their tuition prices. Clearly, greedy colleges cannot keep their hands out of the federal student loan cookie jar.  Continue reading “Why Increased Access to Student Loans Is Mostly Just Good for Greedy Colleges”