Briefing
Do Student Loans Drive Up College Tuition?
Gordon, Grey; Hedlund, Aaron (2022-08)
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.
Richmond Fed Economic Brief , Volume 22 , Issue 32