&lt;Spoiler alert&gt;<p>&quot;... our results show the Bennett hypothesis can fully account for the tuition increase on its own.&quot;<p>i.e. prices go up after the government provides financial aid and&#x2F;or loan subsidies.<p>This was examined in another paper earlier this year: <a href="https:&#x2F;&#x2F;www.newyorkfed.org&#x2F;medialibrary&#x2F;media&#x2F;research&#x2F;staff_reports&#x2F;sr733.pdf" rel="nofollow">https:&#x2F;&#x2F;www.newyorkfed.org&#x2F;medialibrary&#x2F;media&#x2F;research&#x2F;staff...</a><p>Original articulation of the Bennett hypothesis: <a href="http:&#x2F;&#x2F;www.nytimes.com&#x2F;1987&#x2F;02&#x2F;18&#x2F;opinion&#x2F;our-greedy-colleges.html" rel="nofollow">http:&#x2F;&#x2F;www.nytimes.com&#x2F;1987&#x2F;02&#x2F;18&#x2F;opinion&#x2F;our-greedy-college...</a>