Alex Adrianson highlights for the Heritage Foundation’s “Insider Online” blog interesting information about the impact of government intervention on college costs.

Matthew Ladner asks: “Do you think it might be possible that we’ve accidentally induced hyper-inflation in higher education?”

As Ladner notes, the rise in prices associated with the housing bubble that caused such trouble a few years back shows up as a mere blip compared to the run-up in higher education costs. How difficult will the coming higher education correction be?

Recent research by the Federal Reserve Bank of New York has found that colleges and universities use tuition increases to capture between 55 cents and 65 cents of every dollar in Pell grants or subsidized loans.