"'Financial aid' most commonly refers to scholarships: direct grants that students need not pay back... policymakers are starting to admit that the system designed to make college more affordable is making it less so," according to The Indianapolis Star. "Here's why. 'When someone else is paying the bills, people want to buy more of the good or service in question at prevailing prices than when the customer pays the bills,' Vedder explains. 'This means a higher demand for higher education, and other things being equal, higher tuition costs.' The problem isn't just that financial aid distorts the market; it doesn't work as intended. Financial aid is probably here to stay. The challenge is to eliminate the inflationary effects caused by the third-party payer system."