Do Student Loans Drive Up College Tuition?

Abstract: To what extent do student loans drive up college tuition? In ongoing research, we find the answer has varied substantially over time. Following large expansions in student loan limits in 1993 and 2007, our results show further increases in loan limits would have essentially zero effect. In contrast, in the years before those expansions, our estimates indicate tuition would have increased $0.10 for every $1 increase in borrowing limits.

Keywords: student loans; tuition; price increase; passthrough rates;

Access Documents

File(s): File format is text/html
Description: Briefing


Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2022-08

Volume: 22

Issue: 32