Inside Higher Ed

Study Finds U.S. Loans Don't Inflate Professional School Tuition

April 24, 2019

The "Bennett hypothesis" -- the subject of much debate among think tank analysts and higher ed researchers and in these pages -- holds that increases in federal financial aid give colleges and universities subsidies that "blithely" allow them to raise their tuitions. (The eponym for the hypothesis, then education secretary William J. Bennett, had a way with words.)  The belief that this is so continues to influence federal policy makers with a small-government point of view -- including members of the Trump administration who have cited it as justification for proposals to constrain certain student loan programs.

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