Will the new student loan limits actually drive down tuition? Economists weigh in

Federal student loan limits are tightening, raising the perennial hope that colleges will finally lower tuition. But according to NPR, the assumption that federal lending drives up college costs—held for nearly four decades—may not translate to real cost reductions. Economists are skeptical that simply capping loans will force colleges to cut prices; instead, institutions might shift costs onto private borrowers and families. The theory is intuitive, but the connection between loan availability and tuition prices is more complex than the policy assumes.

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