N.Y. Fed: Correlation between spiraling tuition costs and rising federal aid

There's a direct connection between increases to federal student aid and the skyrocketing costs of college tuition, according to a study released by the nonpartisan Federal Reserve Bank of New York. The report examined three aid programs: Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans and Pell Grants, all of which increase credit supply for students trying to pay for college.

There's a direct connection between increases to federal student aid and the skyrocketing costs of college tuition, according to a study released by the nonpartisan Federal Reserve Bank of New York. The report examined three aid programs: Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans and Pell Grants, all of which increase credit supply for students trying to pay for college.…