Can the Trump administration make college cheaper?

The Trump administration is capping federal student loans for most graduate programs at approximately $21,000 annually to combat rising tuition. This policy stems from the Bennett Hypothesis, which argues that unlimited federal loan subsidies allow universities to inflate prices without market consequences. Evidence regarding this theory remains mixed; while some research in Texas indicates a causal link between loan availability and tuition hikes, other experts note that high costs in specialized fields like medicine are driven by significant operational expenses rather than mere profit-seeking. As these caps take effect, students may face limited borrowing options, potentially forcing them to seek private loans or reconsider enrollment. Furthermore, the Department of Education is introducing a "do no harm" provision to penalize programs that fail to demonstrate a sufficient return on investment for graduates, effectively threatening their access to federal funding.