Despite evidence to the contrary, Fox Business anchor Melissa Francis claimed on Fox's Your World With Neil Cavuto that federal student aid spurs universities to increase tuition and that going to a top-tier university isn't worth incurring the debt it entails.
On August 20, Cavuto asked, "The more aid you give, the more excuse [universities] can have to ratchet up the tuition, right?" Francis agreed, saying that "it just gets absorbed right into the price." Francis then said, "It's like any time you print money. It causes inflation." Later in the segment, Francis referenced a recent study by Demos to assert that student loan debt may be costlier than it seems, claiming, "Down the road that costs them $200,000 worth of wealth, because as you're paying off those loans that's money you're not investing in the market, that's a house you're not buying, that's money you're not putting in your 401k."
Cavuto and Francis cited growing federal student assistance as a reason for increasing tuition costs. The vast majority of studies, however, have held that growing federal aid is not responsible for increasing tuition rates. President Obama also recently signed a new law that lowers student loan interest rates and is embarking on a bus tour to call for more action on college affordability.
Francis also claimed that for some, vocational schools may be a better financial choice in the long run than universities, because the cost of the education is not as great. But Francis ignored the fact that, according to the Bureau of Labor Statistics, in most cases those with higher education will make more money and are less likely to be unemployed.
Similar claims about federal Pell Grants have been made by the Wall Street Journal, and Fox News has repeatedly attacked federal student aid by suggesting that enrollment in fictitious 'cheaper' colleges or forgoing college entirely are solutions for those struggling with the costs of college.