This particular consequence is so obvious that it almost didn’t need to be studied, from the Federal Reserve Bank of New York:

We find that institutions [of higher learning] more exposed to changes in the subsidized federal loan program increased their tuition disproportionately around these policy changes, with a sizable pass-through effect on tuition of about 65 percent. We also find that Pell Grant aid and the unsubsidized federal loan program have pass-through effects on tuition, although these are economically and statistically not as strong.

As the Week elaborates:

The resultant tuition hikes can be substantial: The researchers found that each additional dollar of Pell Grant or subsidized student loan money translates to a tuition jump of 55 or 65 cents, respectively. Of course, the higher tuition also applies to students who don’t receive federal aid, making college less affordable across the board.

From the progressive government perspective, this strategy is win-win.  The government turns a generation into debt slaves, and collegiate indoctrination mills — leading the way, among other things, in dismantling religious belief as a competitor to statism, vilifying the foundations of Western freedom, and keeping racial strife as a living, breathing issue in a country in which it could long ago have become purely a matter of history — get an infusion of money to hire more bureaucrats.

The only people who suffer are those who must attempt to make enough money with their increasingly useless degrees to cover their increasingly breathtaking debt and those who would prefer to maintain the United States as a land of freedom, intellectual diversity, and productivity.

(Via Instapundit.)