A monograph from the American Council on Education (ACE) examines the evidence involving the claim that increases in federal financial aid drive up college tuition and whether institutions rely on federal aid as a rationale to give out less of their own institutional aid. The so-called Bennett Hypothesis serves as the launching pad for this analysis.
The monograph can be accessed at http://www.acenet.edu/news-room/Documents/Paper-Archibald-Feldman-Federal-Financial-Aid-Policy.pdf.