"We
find a pass-through effect on tuition of changes in subsidized loan maximums of about 60 cents
on the dollar, and smaller but positive effects for unsubsidized federal loans. The subsidized loan
effect is most pronounced for more expensive degrees, those offered by private institutions, and
for two-year or vocational programs."
"We find a pass-through effect on tuition of changes in subsidized loan maximums of about 60 cents on the dollar, and smaller but positive effects for unsubsidized federal loans. The subsidized loan effect is most pronounced for more expensive degrees, those offered by private institutions, and for two-year or vocational programs."