The Daily Caller has an interesting piece that highlights a recent Federal Reserve Bank of New York report that says federal student loans and grants are a major contributor to the rising college costs.
The report concludes each additional dollar of government student financial aid translated to a tuition hike of about 65 cents.
I don’t think I’m the only one who is surprised to see the finding come out of the Federal Reserve Bank.
Want to learn more?
Hans Bader and our Friends at Minding the Campus have a story on the same subject that references other researchers that have come to the same conclusion.
Also, I’ve blogged on the problems with student financial aid numerous times see here, here and here.
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