STUDY: Student Loan Subsidies Cause Almost All of the Increase in Tuition. “In fact, the tuition response completely crowds out any additional enrollment that the financial aid expansion would otherwise induce, resulting instead in an enrollment decline from 33% to 27% in the new equilibrium with only demand shocks. Furthermore, the students who do enroll take out $6,876 in loans compared to $4,663 in the initial steady state.” But it enriches the higher education industry.

Who could have guessed?