Aid Alters Parental Contributions for Students

Government-provided tuition subsidies "crowd out" parental contributions to their children's college educations, although the effect is much more pronounced for students from wealthier families than for those from lower-income backgrounds, a study published Monday by the National Bureau of Economic Research asserts. The paper, written by two economists at the University of British Columbia and scholars from Yale and New York University (abstract available here), applies economic modeling to test how various changes in federal financial aid policy would play out if they were put in place. Read more...