How the Federal Student Loan Program Contributes to Unaffordable Tuition

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The cost of college has increased significantly since 1991. Total federal aid, so all student loans and grants have increased almost 300 percent. In response, colleges and universities have more than doubled their tuition and fees in real terms. For every additional dollar that the U.S. government subsidizes higher education, a university raises its tuition by 60 cents.

The cost of college has ballooned over the past few decades, far outpacing inflation. In August the Biden administration announced plans to cancel student debt for more than 20 million Americans, a move many economists say will cost taxpayers more than 400 billion dollars and only compounds the problem of soaring college costs. In this episode we’ll explore how tuition prices became so outrageously high, and what some colleges are doing to reverse the trend