Mr. President, Tuition Subsidies Are the Affordability Problem, Not the Solution. He quotes:
...a growing body of research controlling for variables outside of aid supports the hypothesis that aid has an appreciable inflationary effect, though study results vary by type of aid and institution.
Like most individuals, institutions can always find new "needs" to spend money on. About three years ago, my alma mater announced a $600 million bequest. Two months later, their fund plea arrived in the mail, hoping I would increase my annual donation.
Did they lower tuition? No. For greedy government and greedy non-profits, it's never enough and never will be.