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PROOF POINTS: No-limits Borrowing for Graduate School Pushed Prices Up for All

In a 1987 opinion piece in The New York Times, William Bennett, former President Ronald Reagan’s Secretary of Education, explained how he thought federal policy was partly to blame for rising college tuition. This theory became known as the “Bennett Hypothesis.” Since then, as Uncle Sam created and expanded direct student lending programs, the Bennett Hypothesis has been hotly debated. Now, a team of economists has found evidence that subsidized loans have been a major reason why tuition has soared in one sector of higher education:  graduate school. 
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