Snapshot · Planet Money
A Texas study found that for every additional dollar students received in federal grad loans, graduate schools raised their prices by 64 cents — a near two-thirds pass-through rate.
Where this was said
At 15:20 · chapter starts 15:10
For nearly 20 years, the Bennett Hypothesis remained an untested idea. Then in 2006, Congress moved in precisely the opposite direction: it created the Grad PLUS Loan program, allowing graduate students to borrow unlimited amounts to cover tuition and living expenses [1] — Cory Turner "For 20 years, the Bennett Hypothesis was untestable. Then in 2006, Congress created the Grad PLUS Loan program, giving graduate students ac…" 12:36 . This wasn't designed as an experiment, but it functioned as one — a sudden, clean shift in policy that allowed researchers to study whether easier money actually caused schools to charge more. Cory Turner describes calling about half a dozen economists and higher education researchers to find out what the data revealed. The results, as the next chapters show, are genuinely mixed.
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