Episode Details

Graduate students face new federal loan caps—$20,500 annually and $100,000 total—starting July 1, a move aimed at forcing colleges to lower tuition. Rooted in the 1987 “Bennett Hypothesis,” the theory claims more aid fuels higher prices, but evidence is mixed. While some schools, especially for-profits, may adjust prices, others face rising costs from wages, insurance, and tech—forces beyond student loans. Experts doubt dramatic tuition drops, but warn the caps could block access for lower-income students who can’t secure private loans.

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