Student Financial Aid Programs Work! But manage they work for scholars or for colleges?

Suppose that parents desire their college-graduate child or female child who has discovered a good job to be adept to pay for a dwelling that would else be too costly. So they give him or her $25,000 to be utilised in the direction of the down payment. There is no question that they have made dwelling ownership more affordable.

That is the concept behind government economic help programs for scholars, which give (or loan at appealing terms) cash that offsets some of the cost of going to college. Obviously those programs work. If scholars have more cash, their school learning won't cost them (and their families) as much.


But like numerous government programs, economic help for school has accidental penalties that may partially or absolutely negate their proposed consequences. In a latest paper, "How College Pricing Undermines Financial Aid" economists Robert Martin and Andrew Gillen make a powerful case that rather than of employed to assist scholars pay for school, the government's economic help programs really work for the schools.