Can the Trump administration make college cheaper?
Planet MoneyWill limiting how much students can borrow force schools to lower their prices?
The Department of Education thinks so. It has a new plan to bring down tuition costs. Starting today, July 1st, it’s going to cap how much it’s willing to loan to graduate students.
You read that right. To reduce the burden of school…the plan is to give students less money to pay for school.
This plan is, in part, based on an idea that’s been floating around higher education circles for decades: The Bennett Hypothesis, which claims there’s a direct relationship between student borrowing and tuition prices. And therefore, if the Department of Education — the biggest student loan provider in the country — limits how much students can take out, then schools will have no choice but to charge students less.
This hypothesis was floated roughly 40 years ago...without evidence. But now, as the Trump administration rolls out their Bennettian plan, we have decades of data to see how true this hypothesis is.
Today on the show: NPR Education Correspondent Cory Turner explains this theory, and what the new plan influenced by it will mean for borrowers this fall.
Other notes:
Read:
This episode was hosted by Cory Turner and Kenny Malone. It was produced by Willa Rubin and edited by Marianne McCune. It was fact-checked by Charlotte Isidore and engineered by Robert Rodriguez. Alex Goldmark is our executive producer.
Music: NPR Source Audio - “Morning Chorus,” “Belle Mar,” and “The Sky Was Orange.”
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
NPR Privacy Policy
The Department of Education thinks so. It has a new plan to bring down tuition costs. Starting today, July 1st, it’s going to cap how much it’s willing to loan to graduate students.
You read that right. To reduce the burden of school…the plan is to give students less money to pay for school.
This plan is, in part, based on an idea that’s been floating around higher education circles for decades: The Bennett Hypothesis, which claims there’s a direct relationship between student borrowing and tuition prices. And therefore, if the Department of Education — the biggest student loan provider in the country — limits how much students can take out, then schools will have no choice but to charge students less.
This hypothesis was floated roughly 40 years ago...without evidence. But now, as the Trump administration rolls out their Bennettian plan, we have decades of data to see how true this hypothesis is.
Today on the show: NPR Education Correspondent Cory Turner explains this theory, and what the new plan influenced by it will mean for borrowers this fall.
Other notes:
- Bill Bennett: “Our Greedy Colleges”
- Cory Turner: "July 1 brings big student loan changes. Here's what you need to know"
- The Indicator: "What you should know about your student loans"
Read:
- Our book: Planet Money: A Guide to the Economic Forces That Shape Your Life
- Our weekly longform Planet Money newsletter
- Our weekly Indicator round-up newsletter
This episode was hosted by Cory Turner and Kenny Malone. It was produced by Willa Rubin and edited by Marianne McCune. It was fact-checked by Charlotte Isidore and engineered by Robert Rodriguez. Alex Goldmark is our executive producer.
Music: NPR Source Audio - “Morning Chorus,” “Belle Mar,” and “The Sky Was Orange.”
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
NPR Privacy Policy
Read more
Share this episode:
The podcast:
The economy explained. Imagine you could call up a friend and say, “Meet me at the bar and tell me what’s going on with the economy.” Now imagine that’s actually a fun evening.
Explore more content:
Business A random podcastHow can I listen to other podcasts?
Click here to discover another podcast randomly, or here to browse our categories. Lazy? That's okay, we did some research and selected podcasts just for you.
And what is Podmust?
Podmust is a french project aiming to promote the best podcasts. You can help us by sharing this page (this also helps the podcast, by the way). Thank you! 🙏
Stay informed, the audio way.
Podmust curates what you need to listen.
Discover some of our collections:
our best TV & Film podcastsour best News & Politics podcastsour best Music podcasts.
Their Ancestors Helped Found America. Are They Proud of It?
CNN One Thing
SCOTUS and the "Color Blind" Constitution
What Next
In a rebuke of President Trump, the Supreme Court upholds birthright citizenship
Consider This
The Big One: Birthright Citizenship Is Upheld
What A Day
Everything is dupes
Today, ExplainedThe Rest Is History
This week we’re sharing a segment from our friends at the New Yorker Radio Hour. David Remnick sits down with the hosts of the hit podcast, The Rest is History, who turned their childhood… On the MediaRep. James Comer: Expect Public Hearings and ‘Report’ on Epstein
Republican Rep. James Comer of Kentucky sits down with NOTUS’ Reese Gorman to talk about the Oversight Committee’s investigation into Jeffrey Epstein, his likely gubernatorial bid, and… On NOTUSWhy the Supreme Court Upheld Birthright Citizenship
Start HerePositive Talks on Iran Deal, Trump's Crypto Haul, More
Bloomberg News NowBirthright citizenship survives in major SCOTUS ruling
The ExcerptBetter late than never? Keir Starmer finally unveils plans to modernise the UK’s armed forces
The Monocle DailyInfluencers Are Hitting Retirement
ICYMIWhy Indonesians are souring on Prabowo
FT News Briefing
UK Edition
The Burnham blueprint, as told by one of its architects
Andy Burnham has set out his economic plans for Britain. Neal Lawson, from the Burnham-aligned group Mainstream, explains the thinking behind it. Help support our independent journalism at… Today in Focus
Defence spending: too little, too late?
After a year of waiting, the defence investment plan was finally released yesterday. The plan will take defence spending to £80 billion a year by 2029, but some have criticised it for… The Story
Could tunnels fix our ferry problems?
Shetland’s islands could soon be connected by undersea tunnels after councillors backed the initial plans to replace ageing ferries and link Shetland’s mainland to Yell and Yell to… Scotcast
PM in name only: Starmer's hollow legacy laid bare
In today’s episode of The Daily T, Camilla Tominey and Tim Stanley examine the long-awaited and much-scrutinised defence investment plan, introduced by Sir Keir Starmer.Despite the… The Daily TWell, the bad news is: we're French. But the good news is: Podmust curates the world's podcasts so you can focus on staying informed or entertained. And voilà!
© Podmust