Tuition Costs increase with Government "Assistance"
The Bennett Hypothesis: How Increased Government Funding Has Driven Up College Costs In 1987, then-U.S Secretary of Education William Bennett published a provocative op-ed in The New York Times titled "Our Greedy Colleges." He argued that generous federal student aid programs, rather than making higher education more affordable, were enabling colleges and universities to raise tuition with confidence that students could simply borrow more to cover the increases. This idea, now known as the Bennett Hypothesis, has been debated for decades. Yet a growing body of evidence suggests it rings true, particularly as both federal and state investments in education have expanded alongside skyrocketing tuition prices. The core logic is straightforward: when government subsidies—primarily through loans, grants like Pell, and other aid—make students less sensitive to price, institutions face reduced pressure to control costs. Instead, they can expand amenities, administrative staff, and ...