Download or read book The Effect of the Student Housing Boom on the Debt Levels of Students written by John Zachariah and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper intends to examine and quantify the effect of rising student housing prices on the outstanding debt levels of students. Previous literature was utilized to understand and discuss what is causing the Student Housing Boom in the United States, and whether this trend has affected students at Penn State. The primary analysis for this case study was conducted through an anonymous survey of Penn State students, which was used to calculate a Rent-to-Income ratio for each student, and was regressed against the students outstanding student debt upon graduation. The sample was stratified based on what tier their annual household income fell into: $0-$150,000 (Tier 1), $150,001-$300,000 (Tier 2), and $300,001+ (Tier 3). The regression analysis did not show a significant correlation between a students Rent-to-Income ratio and outstanding loan debt in any of the individual three income tiers. Although a weak relationship could be observed in the lowest income bracket and in the aggregated regression, more data points would be needed in order to come to any conclusion. An interesting trend in the correlation differential between each tier was observed, showing a growth in correlation between the Rent-to-Income ratio and outstanding student debt from the highest income bracket to the lowest income bracket. Although the analysis was largely inconclusive, further research should be conducted as the student housing boom continues to price into the housing market at Penn State and other universities. With the student housing market having the power to further ostracize students coming from lower-income households and worsen the affordability of higher education, it is essential that its growth be examined carefully.
Download or read book Bait and Switch written by Robert H. Scott, III and published by Springer Nature. This book was released on 2023-11-08 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book traces how the student loan system has created insurmountable student debt traps for millions of student borrowers contrary to its original purpose of promoting social mobility. Today, approximately 45 million Americans hold over $1.7 trillion in student loan debt, with over 20% of borrowers in default. Student loan debt has the greatest negative impact of wealth-poor students, with Black and first-generation students less likely to attain a college degree, more likely to default on student loan debt, and less likely to gain the same type of wage premium from their college degrees than white student loan borrowers. The book also offers a wide range of policy solutions for remedying the student loan debt crisis.
Download or read book How the Financial Crisis and Great Recession Affected Higher Education written by Jeffrey R. Brown and published by University of Chicago Press. This book was released on 2015-01-08 with total page 343 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis had a profound effect on both public and private universities. Universities responded to these stresses in different ways. This volume presents new evidence on the nature of these responses and how the incentives and constraints facing different institutions affected their behavior.
Download or read book Policy Considerations Regarding Student Loan Debt and Higher Education written by Todd R. Niemczyk and published by . This book was released on 2021 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Within the last 30 years, the policy considerations regarding student loan debt and higher education have become a series of strong opinions, heated debate, and partisan politics. Key stakeholders including the United States Government, both for-profit and traditional higher- educations institutions, financial organizations, special interest groups, and students all have interests. More so, all branches of Government, the Legislative, Judicial, and Executive, are areas where policy is both born and challenged. Some are aligned, and some are competing such that crafting sound policy regarding the lending and management of student loan debt has created a difficult situation that may well lead to disastrous consequences. Currently the outstanding student loan debt is at $1.56 trillion dollars and rising (Friedman, 2020). Next to outstanding mortgage debt, student loan debt is the next highest debt in the United States (Friedman, 2017). Comparisons in student debt have been made to the "housing bubble" of 2008, and the repercussions may be as equally devastating, if not worse, should default rates increase. From the Federal government's perspective, balancing diversity and access to higher education with the risks of increased and unregulated student lending are key issues. From the students' perspective, how can affected students and graduates address unfair lending practices and hold subpar higher-education institutions accountable? Legal remedies, including the Borrower Defense Rule and the statutory provisions of the bankruptcy statutes may be available to students and graduates to challenge student loan forgiveness and subpar higher-education institutions, but these are complex legal remedies. More so, changes in bankruptcy law have made this much more difficult (Dobson, 2019; Iluiano, 2012; Grant 2011). All of these issues affect society at large. Should the student-loan bubble burst, the effects on the economy may be tantamount to the Great Recession. According to the Federal Reserve, the Great Recession is known as a two-year economic downturn from 2007 to 2009 (Rich, 2013). It marked the longest recession since World War II, resulting in unemployment peaking at 10 percent (Rich, 2013). Notably, this played a part in triggering a housing crisis where 9.3 million homeowners lost their homes between 2006 and 2014 (Kusisto, 2015). The steady increase in student loan debt is remarkably similar to the outstanding debt in the housing bubble. This dissertation will analyze student loan debt while specifically focusing on the legal ramifications of the Borrower Default Rule and student loan debt defenses. These increasingly litigated issues provide a broad picture of evolving policy in higher education and will provide a means to highlight current issues and trends related to the policy considerations being debated amongst students, educators, and law makers.
Download or read book Game of Loans written by Beth Akers and published by Princeton University Press. This book was released on 2016-09-20 with total page 193 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why fears about a looming student loan crisis are unfounded—and how they obscure what's really wrong with student lending College tuition and student debt levels have been rising at an alarming pace for at least two decades. These trends, coupled with an economy weakened by a major recession, have raised serious questions about whether we are headed for a major crisis, with borrowers defaulting on their loans in unprecedented numbers and taxpayers being forced to foot the bill. Game of Loans draws on new evidence to explain why such fears are misplaced—and how the popular myth of a looming crisis has obscured the real problems facing student lending in America. Bringing needed clarity to an issue that concerns all of us, Beth Akers and Matthew Chingos cut through the sensationalism and misleading rhetoric to make the compelling case that college remains a good investment for most students. They show how, in fact, typical borrowers face affordable debt burdens, and argue that the truly serious cases of financial hardship portrayed in the media are less common than the popular narrative would have us believe. But there are more troubling problems with student loans that don't receive the same attention. They include high rates of avoidable defaults by students who take on loans but don’t finish college—the riskiest segment of borrowers—and a dysfunctional market where competition among colleges drives tuition costs up instead of down. Persuasive and compelling, Game of Loans moves beyond the emotionally charged and politicized talk surrounding student debt, and offers a set of sensible policy proposals that can solve the real problems in student lending.
Download or read book The Effect of Housing Wealth on College Choice Evidence from the Housing Boom written by and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Rising Student Loan Debt on Mortgage Interest Rates and Debt written by Michele R. Scarbrough and published by . This book was released on 2012 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Student loan debt (SLD) enables the pursuit of higher education, as it allows borrowers to fund more education (or more expensive education) than they otherwise could consume. But SLD also may carry with it a cost, namely higher debt levels that can crowd out spending later in life, including on housing. To explore the impact of SLD on such purchasing behavior, this paper studies the effect of cumulative SLD on mortgage debt amounts and interest rates, and how that effect has changed over the past 15 years utilizing data provided by the Federal Reserve's Survey of Consumer Finances. It does so by employing an ordinary least squares regression analysis with household demographic and finance controls to isolate the effect SLD has on mortgage interest rates and mortgage debt. This analysis proves useful to policymakers because there has been little empirical analysis studying the impact of SLD on households' ability to participate in the economy in the form of mortgage loans. It suggests that SLD has the propensity to impact long-term financial decision-making at the household level and has the potential to alter mortgage markets. My results indicate that SLD holders pay a premium on their mortgage interest rates and tend to obtain smaller mortgage loans.
Download or read book Sold My Soul for a Student Loan written by Daniel T. Kirsch and published by . This book was released on with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: With unprecedented student debt keeping an entire generation from realizing the "American Dream," this book sounds a warning about how that debt may undermine both higher education--and our democracy. American higher education boasts one of the most impressive legacies in the world, but the price of admission for many is now endless debt. As this book shows, increasing educational indebtedness undermines the real value of higher education in our democracy. To help readers understand this dilemma, the book examines how student debt became commonplace and what the long-term effects of such an ongoing reality might be. Sold My Soul for a Student Loan examines this vitally important issue from an unprecedented diversity of perspectives, focusing on the fact that student debt is hindering the ability of millions of people to enter the job market, the housing market, the consumer economy, and the political process. Among other topics, the book covers the history of consumer debt in the United States, the history of federal policy toward higher education, and political action in response to the issue of student debt. Perhaps most importantly, it explores the new relationship debtor-citizens have to the government as a result of debt, and how that impacts democracy for a new generation.
Download or read book Popping the Higher Education Bubble How to Navigate the Impending Student Loan Crisis written by Mike Fishbein and published by . This book was released on 2014-04-17 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cheap credit on student loans coupled with widespread beliefs of ever-increasing returns on investment has caused college tuition to vastly outpace inflation and family incomes. From 1976 to 2010 commodities prices rose 280% and homes prices rose 400% while private education rose an incredible 1000%. While the price of education has skyrocketed, the value of a degree has not kept pace. The increase in supply of degree holders has created an imbalance in the labor market . In 1940, only one in 20 Americans held a college degree. By 1977, that number had soared to one in four. Over the past 30 years, higher education has gone from facilitating upward mobility to exacerbating inequality. For the first time in history, the majority of unemployed Americans attended college, and it's no more expensive than ever to go to college. Student debt is now greater than $1 trillion and many graduates are unable to secure employment sufficient to pay off these loans. As a result, students are increasingly beginning to default on these loans. Popping the Higher Education Bubble discusses the causes of the economic bubble, the harmful effects it has had, potential solutions to the problems, an analysis of whether college is still a wise purchase, and more. The higher education bubble has many similarities to the housing bubble. By comparing the student loan bubble to the mortgage bubble, this book also identifies potential outcomes and investment opportunities were the student debt bubble to pop.
Download or read book Student Debt Crisis written by Matthew Gumke and published by Independently Published. This book was released on 2019-09-19 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: America is suffering from a debt crisis, cased by insane levels of student loans. Wages have only increased 67% since 1970, yet student loans are exploding to record levels, year after year. This, along with soaring cost of living, has made it nearly impossible for ordinary millennials who go to college, to become financially independent in the richest country on earth. If you go to college and study most degrees and use the information you learned in your degree in the workforce, the American dream is dead. As an entrepreneur who's looking to hire millennials, I can tell you that most graduates don't have a clue how to help my businesses.Not only that, they're in a constant state of fear and panic. Even if I pay them a great wage, they can't afford to make ends meet due to their obscene student loans, often at high interest rates. They're trying to get married, buy a house and have kids, yet their crippling loans makes it impossible.Many millennials are ostracised from the dating scene, because they're simply too poor from student loans to date. It's affecting their self-image, self esteem and confidence. 1.Total student loan debt is over $1.5 Trillion2.College tuition has increased 213% since 19803.More than 3 million people aged 65+ are still paying off their student loans4.As of May 2018, 101 people owe at least $1m in unpaid student loans5.Black families carry more debt than white families and they're more likely to default on their loans.6.40% of student will default on their loans by 20237.49% of total loan value in bankruptcies are student loans. They're unforgivable by bankruptcy 8.13% of of Americans surveyed last year said they've decided not to have kids because their student loan debt is so high9.Student loan defaults are higher than the 2008 mortgage crisis10.50% of millennials think college wasn't worthwhileThis message is for concerned parents who worry about the future of their children/teenagers. It's also for people worried if going to college/university in the 21st century will help them get ahead in life. It's also for people stuck in a student loan crisis, looking to finally learn how to create a high income. I'm writing this because I wish someone gave me this advice when I was 16 and I was being shouted at for not going to university. I was told that I'd never be successful. I was told that my life would be so miserable, it wouldn't be worth living. I believe that college died a painful death this century. No longer does a child need a formal education to get ahead in life. College in the United States of America has turned into a horrible scam, enriching a few at the top of the pyramid, while the teachers and students suffer. Do you think the children of the people that own these colleges go to university? The children of people making 10's of millions of dollars per year?It's turned middle class children of the future into debt slaves. Unless these debt slaves somehow find a way to produce an exceptionally high income, they'll never be able to create the levels of upward social mobility seen before in previous generations. Parents know it, kids know it, college has turned into a scam. Unless you want to be a doctor, lawyer, engineer, accountant, nurse, or something that needs a degree, you're better off not signing the dotted line on a 6-figure loan. From the statistics you'll see and learn about in this book, even a high income career isn't enough. Not only do I show the problems, I provide solutions. This could be the book that helps you finally sell them on the idea that you don't need to go to college/university to become successful. I was able to become successful without crippling loans. I want the same for you too.
Download or read book The Effect of Housing Wealth on College Choice written by Michael Lovenheim and published by . This book was released on 2015 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: The higher education system in the United States is characterized by a large degree of quality heterogeneity, and there is a growing literature suggesting students attending higher quality universities have better educational and labor market outcomes. In this paper, we use NLSY97 data combined with the difference in the timing and strength of the housing boom across cities to examine how short-run home price growth affects the quality of postsecondary schools chosen by students. Our findings indicate a $10,000 increase in a family's housing wealth in the four years prior to a student becoming of college-age increases the likelihood she attends a flagship public university relative to a non-flagship public university by 2.0 percent and decreases the relative probability of attending a community college by 1.6 percent. These effects are driven by relatively lower and middle-income families. We show that these changes are due to the effect of housing wealth on where students apply, not on whether they are admitted. We also find that short-run increases in home prices lead to increases in direct quality measures of the institutions students attend. Finally, for the lower-income sample, we find home price increases reduce student labor supply and that each $10,000 increase in home prices is associated with a 1.8% increase in the likelihood of completing college.
Download or read book Federal Financing of Higher Education at a Crossroads written by Camilla E. Watson and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Currently, there are 44.2 million Americans holding student loan debt collectively totaling $1.5 trillion. This massive debt has a profound effect, not only on the lives of the debtors, but also on the national economy because it prevents the debtors from buying homes and cars and creating new businesses. This debt is also speculated to be a likely trigger for the next housing bubble because student loans, like the subprime mortgage loans underlying the 2008 financial crisis, are securitized and sold to investors. But many of those with student loans struggle to find jobs that will enable them to pay off their debt. In some cases, they leave school before graduating because they perceive their debt as too overwhelming. When that happens, their lack of a degree exacerbates their struggle to find decent jobs. Moreover, fear of undertaking substantial debt leads some individuals to forego higher education altogether, thereby often condemning them to a lifetime of low-paying jobs. This article traces the development of federal student loans and examines the numerous problems comprising the student loan debt crisis, among them the high cost of postsecondary education, the crisis-level amount of debt undertaken by students, the difficulties of repayment, and the fraud and abuse perpetrated by proprietary institutions and predatory lenders. It attributes these problems to Congress, which it argues has both acted, and failed to act, due to misjudgments, as well as, at least sometimes an indifference, sometimes bordering on an animus, to students in need. This article also critiques proposed legislation to reform federal funding of higher education and questions whether the mistakes of the past will soon be repeated in the pending reauthorization of the Higher Education Act of 1965.
Download or read book The Impact of Housing Markets on Consumer Debt written by Meta Brown and published by . This book was released on 2013 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the impact of large swings in the housing market on nonmortgage borrowing, including student, credit card, auto, and home equity debts. For this purpose, we use CoreLogic geographic house price variation, matched with rich data on consumer liabilities from the Equifax-sourced FRBNY Consumer Credit Panel. The length and timing of our panel allow us to study the consumer debt portfolio response to house price changes during a boom-and-bust cycle of historic magnitude as well as during more ordinary times. In first-differenced instrumental variables estimation, we find that during 1999-2001, homeowners substituted out of nonhousing (largely credit card) debt and into home equity-based debt at a nearly dollar-for-dollar rate in response to house price increases. During the housing boom of 2002-06, however, homeowners abandoned the practice of substituting into less costly debt as equity grew, and instead increased obligations across the board. From 2007-12, sample homeowners experienced a 23 percent average house price decline, and withdrew from home equity debt without adding to non-housing debt. We observe substantial heterogeneity in this pattern: Substitution in both 1999-2001 and 2007-12 ranges from 50 cents to more than dollar-for-dollar for older and prime borrowers, while the decidedly nonprime borrow more modestly, show less evidence of substitution, and shed large amounts of all types of debt from 2007-12. Finally, difference-in-differences and FD-IV estimates are consistent with both 1) a 2012 relative debt overhang of at least $1,800 on average, despite little remaining home equity advantage, for homeowners who experienced a more pronounced boom-and-bust cycle and 2) little substitution out of home equity debt into student loans in response to recent house price declines.
Download or read book The Housing Boom and Bust written by Thomas Sowell and published by Basic Books (AZ). This book was released on 2009-05-12 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust. The "creative" financing of home mortgages and "creative" marketing of financial securities based on these mortgages to countries around the world, are part of the story of how a financial house of cards was built up--and then collapsed.
Download or read book Investing in Higher Education written by White House Council of Economic Advisers and published by . This book was released on 2016-08-24 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many students access student loans to help finance their education, and last year federal student loans helped 9 million Americans to make that investment in their futures. The Obama Administration has taken several steps to address the challenges of ensuring that all students who could benefit from a college degree are able to attend a quality school, graduate, and then repay their loans on manageable terms after they graduate. Contents of this report: Federal Student Aid Facilitates High-Return Investments: Recent Trends and the Current State of Student Debt; Borrower Characteristics and Loan Size; Student Loan Repayment; Student Loans, Other Individual Outcomes, and the Overall Economy; Administration Efforts to Help Students Better Invest; Conclusion. Figures and tables. This is a print on demand report.
Download or read book Social Inequality written by Heather M. Fitz Gibbon and published by Routledge. This book was released on 2019-07-02 with total page 598 pages. Available in PDF, EPUB and Kindle. Book excerpt: Like past editions, this tenth edition of Social Inequality: Forms, Causes, and Consequences is a user-friendly introduction to the study of social inequality. This book conveys the pervasiveness and extensiveness of social inequality in the United States within a comparative context, to show how inequality occurs, how it affects all of us, and what is being done about it. This edition benefits from a variety of changes that have significantly strengthened the text. The authors pay increased attention to disability, intersectionality, immigration, religion, and place. This edition also spotlights crime and the criminal justice system as well as health and the environment. The tenth edition includes a new chapter on policy alternatives and venues for social change.
Download or read book Congressional Record written by and published by . This book was released on with total page 1500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
