The Bull Elephant
  • Home
  • About The Bull Elephant
  • Fun Stuff
  • Contact The Bull Elephant
Latest Posts
Northam to relax some COVID restrictions
Liberty University denies any agreement reached with RPV...
That Never Happened
Coca-Cola reportedly told its staff to ‘be less...
General Assembly passes bill to ban the death...
Graphs: Twitter, Facebook Followers For All Virginia 2021...
Sunday Funday Memes!

The Bull Elephant

  • Home
  • About The Bull Elephant
  • Fun Stuff
  • Contact The Bull Elephant

Student aid drives up college costs

written by Jeanine Martin January 2, 2018

In 1987 President Reagan’s Education Secretary Bill Bennett said the constant increases in the costs of college are correlated to the increase in student aid.  This became known as the “Bennet Hypothesis.” From the National Review: 

Since the government was putting many dollars in the pockets of high-school grads which they could use only if they enrolled in an accredited college, it stood to reason that the people who ran the colleges would see the opportunity to capture many of those dollars for their own spending desires by increasing tuition and fees. While some leftists dismissed the idea (“College presidents aren’t like greedy businessmen!”) those who have carefully analyzed the connection between student aid and rising costs have largely come to the conclusion that Bennett had it right. 

 

Now the James G. Center for Academic Renewal has studied the Bennet Hypothesis and proven it to be correct.

The theory is really just common sense. If the government gives money to students to spend on education, then students will be able and willing to spend more on that product. Universities, knowing that the funds are available, raise tuition without worrying about whether students can afford it. An ugly cycle ensues.

 

And now, we’re seeing the effects. The price of college tuition and fees has risen 1,335 percent since 1978: much faster than inflation and faster even than medical care (704 percent) and housing (511 percent). Too many students go to college for the wrong reasons and too few graduate. Almost 4 million students dropped out of college with debt in 2015 and 2016. Student borrowing has soared to more than $1 trillion with many graduates (and non-graduates) unable to pay back their student loans.

 

The author of the study,  Jenna A. Robinson,  looked at 25 peer-reviewed studies on the Bennett Hypothesis, concluding:

 

Taken as a whole, the scholarly research I examined suggests that federal student aid increases university tuition rates, perhaps by as much as 60 cents on the dollar. Of the 25 studies surveyed, a majority found some effect of federal subsidies on the price of higher education in at least one segment of the higher education market. The effect was most pronounced at for-profit institutions….

In short, student borrowing is on an unsustainable path. Understanding the Bennett Hypothesis and examining the evidence is the first step in getting back on course.

Student aid drives up college costs was last modified: January 2nd, 2018 by Jeanine Martin
Bennett Hypothesisstudent loansUniversity costs
13 comments
Jeanine Martin

Also known as Lovettsville Lady, I am a Republican activist in the wilds of western Loudoun County.

Your life will be better if you click one of these

Northam to relax some COVID restrictions

February 24, 2021

Liberty University denies any agreement reached with...

February 24, 2021

That Never Happened

February 24, 2021

SCC backs drive-in convention in Lynchburg

February 23, 2021

Coca-Cola reportedly told its staff to ‘be...

February 23, 2021

General Assembly passes bill to ban the...

February 22, 2021

Graphs: Twitter, Facebook Followers For All Virginia...

February 21, 2021

Sunday Funday Memes!

February 21, 2021

The RPV at the Leadership Crossroads

February 20, 2021

Results of Amanda Chase lawsuit against RPV...

February 20, 2021

Fun Stuff

  • Sunday Funday Memes!

  • Sunday Memes–We deserve a laugh today

  • Best Super Bowl commercials 2021

  • Sunday Memes, Circleback!

  • Senator John Kennedy’s Witty Humor

Advertisement

Advertisement

Sign Up for Email Alerts

[wysija_form id="5"]

Advertisement

  • Facebook
  • Twitter

@2017 Bull Elephant Media LLC.


Back To Top