scripod.com
Can the Trump administration make college cheaper?

Overview

Shownote

Highlights

Transcript

Chapters

Pins

Can the Trump administration make college cheaper?

Planet Money

Jul 01
Planet Money

Planet Money

Jul 01
OverviewShownoteHighlightsTranscriptChaptersPins

Shownote

Will limiting how much students can borrow force schools to lower their prices?  The Department of Education thinks so. It has a new plan to bring down tuition costs. Starting today, July 1st, it’s going to cap how much it’s willing to loan to graduate st...

Highlights

The U.S. Department of Education is implementing a new policy that caps federal graduate student loans at $21,000 per year, based on a decades-old theory that limiting financial aid will force colleges to lower tuition. This episode explores the evidence behind the Bennett Hypothesis, the potential consequences for students and universities, and the mixed results from past experiments.
00:00
Less aid forces colleges to reduce prices
09:55
Federal student aid enables colleges to raise tuition.
13:20
For every additional loan dollar, graduate tuition rose by 64 cents.
20:33
Caps will mainly affect 30% of borrowers at expensive schools
26:54
Using borrowers as messengers to lower tuition.

Chapters

A Bold Experiment: Capping Graduate Loans to Force Tuition Down
00:00
The Bennett Hypothesis: Does Giving Students Less Money Actually Lower Costs?
09:55
Mixed Evidence: What a Texas Study and a National Analysis Reveal
13:20
Who Gets Squeezed? The Real Impact on Borrowers at Expensive Schools
20:33
A New 'Do No Harm' Rule: Using Borrowers as Messengers to Rein in Costs
26:54

Transcript

Speaker 5: This message comes from Capella University. That spark you feel? That's your drive for more. Capella University's FlexPath Learning Format lets you earn your degree at your pace, without putting life on pause. Learn more at capella.edu. Speaker...