"Among the many sayings dubiously attributed to Albert Einstein is that the difference between stupidity and genius is that genius has its limits.
Lack of limits and stupidity have another overlap in the Parent PLUS loan program, which allows parents of undergraduate college students to borrow unlimited sums from the federal government for their children’s education.
While observers of higher education (myself included) have long suspected that this open-ended subsidy enables colleges to hike tuition, new evidence lends more credence to this theory.Several recent studies have found evidence that other federal student aid programs drive of tuition increases.
A 2015 study found that a dollar of subsidized (non-PLUS) student loans increases published tuition by 58 cents at a typical college, with larger effects once reductions in institutional financial aid are taken into account..."
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