Politicians like to wax about making college more affordable, so it’s ironic that their solutions—cheap loans and taxpayer cash—end up increasing the cost of a degree. The latest evidence that schools jack up tuition to absorb federal money comes in a new report from the Federal Reserve Bank of New York.

Annual student loan originations have more than doubled since 2001, to $120 billion in 2012, and the government backs about 90% of these borrowings. Meantime, average tuition has climbed 46%.

...