Colleges are cutting tuition for MBA programs. But it’s not out of charity or because they got another taxpayer-funded subsidy to “fix” exploding higher education prices. Rather, and perhaps counterintuitively, it’s because Uncle Sam finally capped the previously unlimited federal loans for graduate students.

At first blush, this sounds like it would make the problem worse. Fewer borrowing options for students seems like it would shift more of the cost of attendance to today, when students are young with relatively low incomes. But that assumes—unrealistically—that the cost of education is fixed, and that colleges don’t respond to changes in the market.

It’s a demonstrably proven fact that endless government subsidies for education via ever-growing student loan availability have caused tuition to explode. Even the Federal Reserve’s researchers (hardly right-wingers) came to that conclusion.

Likewise, research published by the National Bureau of Economic Research found that providing unlimited graduate school loans didn’t expand access or increase degrees awarded.........

© Townhall