This study examines the effect of the higher education antitrust exemption on enrollment of financial aid applicants at highly selective private colleges that implemented the exemption. The antitrust exemption, used since the 2002-03 academic year, was made permanent in May 2008 by the U.S....

We examine college affordability under the existing pricing and financial aid system that awards both non need-based and need-based aid. Using data of freshmen attending a large number of selective private and public colleges, we find that the prices students actually pay for college have...