News
By Alex Sellinger
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January 28, 2005
A study released Tuesday concludes that the increasingly generous financial assistance programs used to make college more affordable for lower income students may be fueling tuition increases nationwide.
"Federal loans, Pell grants and other assistance programs result in higher tuition for students at our nation's colleges and universities," the study reported.
The study, published by the libertarian Cato Institute's Policy Analysis, is entitled "Making College More Expensive: The Unintended Consequences of Federal Tuition Aid." Economist Gary Wolfram, the George Munson Professor of Political Economy at Hillsdale College in Hillsdale, Mich., wrote the report.
"To the extent that we give more people aid and get more people to come we are going to bid up prices," Wolfram said.