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if only the u.s. government actually allocated money into helping students pay for college
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It does and it has for most of my lifetime--all of my lifetime, for sure, if federal support for research activities at colleges and the G.I. Bill are included. But some economists argue that a lot of third-party payment for any kind of service just tends to drive up the list price, because the ultimate customers are less price-conscious than they would be if they were paying directly out of pocket.