Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges

Stephanie Riegg Cellini and Claudia Goldin

American Economic Journal: Economic Policy, 2014, vol. 6, issue 4, 174-206

Abstract: We provide the first comprehensive estimates of the size of the for-profit higher education sector and evaluate whether for-profits increase tuition in response to federal subsidies. By using state administrative data we include institutions that do not participate in federal student aid programs and are missed in official counts. Including these institutions doubles the number of for-profits and increases students by one-third compared with official counts. Aid-eligible institutions charge tuition for sub-baccalaureate (mainly certificate) programs that is about 78 percent higher than that charged by comparable programs in nonparticipating institutions, lending some credence to the "Bennett hypothesis" of federal aid capture.

JEL-codes: H52 I22 I23 I28 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/pol.6.4.174
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Citations: View citations in EconPapers (54)

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Related works:
Working Paper: Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges (2014)
Working Paper: Does Federal Student Aid Raise Tuition? New Evidence on For-Profit Colleges (2012)
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