A new analysis comparing how much members of Congress paid for their schooling to the costs of today’s students backs him up. When the members of the House of Representatives went to college, the average cost for a year of school was $8,487 in today’s dollars, according to the study published Thursday by Demos, a left-leaning think tank.
Washington, DC – Today, Demos, a New York public policy organization, released a first-of-its-kind congressional college yearbook, which compares the cost of college tuition members of Congress experienced with the cost of college for today’s students. The yearbook, entitled When Congress Went to College, finds that the average student today paid nearly $20,000 a year more for college than current members of Congress.
The high-priced ads, which could reach an audience of more than 100 million, are just the latest indication that catering to student loan borrowers can be big business. Companies are now offering credit cards with rewards geared to student loan help and tools to help borrowers monitor their debt. Employers are even looking to lure talent with benefits packages that include student loan help.
Overseas students subsidize other students and programs, as they often pay higher fees, said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “Many colleges and, in particular, public colleges have relied on international students paying full-freight in order to make up for budget shortfalls elsewhere,” he said. [...]
[T]he pain of retail sector hemorrhaging will be most severe for Black workers considering retail is the second largest Black population employer. Nearly 12 percent of retail workers are Black – close to their overall population ratio. And 54 percent of Black retail workers are supporting households, according to think tank Demos, the highest proportion of any demographic group in that sector. Black retail workers also suffer the highest poverty rates.
[M]ark Huelsman, a senior policy analyst at the think tank Demos, who focuses on student debt, says “we’ll see more and more” programs like Mission Scholarships. “There’s everything right with an institution looking at a labor market shortage” and trying to ameliorate it. “Free education is an obvious carrot.” [...]
Last fall, Point Loma began offering some of its 4,500 students money to pay for college in exchange for a percentage of their future earnings. The model, known as an income share agreement, requires colleges and students to take a chance on each other, a shared responsibility that attracted Point Loma. [...]
“There were fewer jobs available. So you had students or older workers wanting to retrain for a job,” said Mark Huelsman, senior policy analyst at Demos, a national public policy advocacy group.
The increased economic anxiety among black and Hispanic workers is not surprising when considering the fact that working-class workers of color tend to be paid less on the job and, therefore, hold less wealth.
No-loan policies at selective institutions can be eye-catching for low-income students that may not have viewed those schools as a viable option said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. But they do little to increase equity in higher education because the group of low-income students educated at these schools is so small, he added.
“You hear the apocryphal story of being able to work your way through school, because it was true,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “If you were a student in 1980 and you took on a full-time summer job and a part-time job in the school year, your college costs would be covered and your living expenses would be covered.” [...]
Demos, a liberal think tank, and the Institute on Assets and Social Policy at Brandeis University found African Americans are far more likely to have student debt, regardless of income. Black families, after decades of being shut out of traditional ladders of economic opportunity, have the fewest resources to cover the costs of college or to protect against the risk of borrowing.
“You’re going to have deductions and credits that primarily benefit the middle- and upper-class go away, but it’s not done in benefit to the working class,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank. “It’s just done as a revenue raiser.”
Employees would likely contribute less to IRA accounts
If the proposal passes, there is a strong indication that U.S. workers will either shift their savings to Roth Individual Retirement Account (IRA) accounts, where contributions are taxed immediately or employees and employers will contribute less for retirement.
Some are heartened to see functioning-for-free college popping up in places like New York and elsewhere. Mark Huelsman senior policy analyst at Demos, a left-leaning think tank and the author of an influential white paper on free college, said he hopes they’ll serve as “laboratories” for policymakers to understand both the benefits and the limitations of different free college program designs.
Another solution — though one that is often a struggle to achieve — is to unionize, which has worked before in industries like teaching, policing, and manufacturing. “If retail workers were able to organize strong unions across the country, there’s no reason retail jobs couldn’t be good jobs like manufacturing jobs,” Amy Traub, Associate Director for Policy and Research at public policy organizationDemos, tells Bustle.
Even before the Equifax breach, the integrity of credit reports was murky at best. A Federal Trade Commission report found that as many as one in five consumers had a credit error from one of the top reporting agencies (Equifax, Experian, and TransUnion). But the fundamental problem isn’t data integrity—it’s economic justice. According to a survey by the think tank Demos, declining credit was associated more with misfortunes and unforeseeable crises than with a lack of financial responsibility.
“If you’re a college and you’re offering a very low level of prospective debt to students, that means nothing if the people who overall have more unmet financial need, or are more likely to have to borrow, can’t get into your institution,” said Mark Huelsman, a senior policy analyst at Demos, a left-leaning think tank.
Rankings can also subtly push colleges away from spending on financial aid for needy students and, instead, toward things rewarded by the rankings, like small faculty-to-student ratios, Huelsman said. [...]