We find that increases in institution-specific subsidized (unsubsidized) loan maximums lead to a sticker- price increase of about 60 (40) cents on the dollar.
---
It is basic supply and demand. How could universities charge so much if no one could pay for it? They would have to lower prices.
Correlation does not mean causation. Tuition prices were already on their way up before 2007 (as the paper targets). I suspect that this is because in the 80s and 90s the data showed that a 4-year degrees increased income substantially, and tons of people applied for colleges.
I swear, the "facts" that are flatly asserted on this site, with zero questioning or critical thought, seem roughly equivalent to the "election was stolen!" facts that you find in other echo chambers.
