The Bennett Hypothesis (the idea that federal financial aid contributes to rising tuition) has lately become a much more credible idea. I would like to think that my study, Introducing Bennett Hypothesis 2.0, is responsible for this amazing resurgence of the theory, but I think that most of the credit has to go to law schools. Their scandalously high prices can only be explained by their students’ access to virtually unlimited federal financial aid loans. This blatant (and tragic) example of the hypothesis in action is becoming more widely known, making it increasingly difficult to completely dismiss the hypothesis.
For example, while some argued in 2009 that
- the Bennett hypothesis keeps on rearing its ugly head. I think after more than 20 years of this nonsense it’s time to call the idea what it is– just plain stupid– and stop giving ink to the people who repeat it.
I think that here in 2012, the Chronicle was right to give ink to these folks
- In 1987, then-Secretary of Education William J. Bennett argued that federal loan subsidies were enabling “greedy colleges” to raise tuition. He was at least partly right…