Cognitive Scaffold

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MENTAL MODEL · M5422

Bennett Hypothesis

Bennett Hypothesis
BusinessHigh supportEconomics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

"Government increases in student aid (such as student loans) ultimately lead to higher college tuition." Colleges know that students have more money, so they raise tuition, thereby absorbing the benefits of the aid.

SCAFFOLDING EFFECT

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The incidence of subsidies. Any consumer subsidy (such as housing purchase subsidies or new energy subsidies) will ultimately be largely captured by suppliers (developers, car manufacturers) through price increases. Subsidies often do not reduce the burden on consumers but only push up prices.

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Bennett proposed that government increases in student aid (such as student loans) are partially absorbed by colleges through higher tuition, so the subsidy may not fully benefit students.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/College_tuition_in_the_United_StatesZH · Explicit
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