Can the Trump administration make college cheaper?
Summary
Planet Money examines the Trump administration’s new cap on federal graduate student loans, designed to lower tuition costs by limiting borrowing power. Host Kenny Malone and NPR’s Corey Turner explore the "Bennett Hypothesis," which suggests that reduced federal aid forces colleges to cut prices. They discuss mixed economic evidence on whether this strategy works and warn that it may primarily reduce enrollment rather than tuition, disproportionately affecting lower-income students.
Topics discussed
Mattress Firm advertisement
Introduction to new student loan caps
Host introductions and sponsor ads
Net price vs. sticker price in college
History of graduate loan limits
The Bennett Hypothesis explained
Texas study supports Bennett Hypothesis
Contradictory evidence from other fields
Mixed conclusions and sponsor ads
Impact on elite schools and tuition
Student enrollment and private loans
Game of chicken with universities
Do no harm provision and ROI
Outro and additional resources
Closing sponsor advertisements
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