"Decades-Old Theory on Federal Student Loans and College Costs Faces Scrutiny: A long-standing assumption suggests that federal student loans play a significant role in determining the prices colleges charge for tuition. This notion has been debated for almost four decades, with many arguing that the availability of loans allows institutions to hike their prices, knowing that students and their families can still afford to pay. However, a closer examination of this supposed link has raised questions about its validity, sparking a renewed debate about the impact of federal student loans on the affordability of higher education. As policymakers and education experts continue to grapple with the issue, one thing is clear: the future of federal student loans and their effect on college costs hangs in the balance."
The idea that there's a connection between federal student loans and what colleges charge dates back almost four decades. But it's unclear that link can lead to lower costs.