This week has delivered two economic surprises that illustrate the right way and the wrong way to respond to the worst economic disaster since the Great Depression.
First, the euro zone economy shrank more than expected in the past three months, moving France back into a recession. That's what happens when you implement an austerity policy that serves to undermine economic demand.
A new analysis of state spending on higher education finds that states with a diverse economy, low unemployment, and a history of support for higher education are likely to maintain public spending on colleges. Conversely, states that do not have those characteristics have a hard time overcoming fiscal challenges to create a robust system of higher education.
Access to a post-secondary education is a vital aspect of the American dream, allowing for equality of opportunity and a stable pathway to the middle class for all who are willing to work for it regardless of their background or socioeconomic status. Higher education not only improves the prospects for the employment and earnings of individuals, but has benefits that feed back into communities and society as a whole, including increases in civic participation and productivity, and preparedness for success in the global economy. Our shared commitment to these values is reflected
A new fact sheet from Demos, College on a Credit Card, investigates the relationship between educational expenses and credit card debt, and shows that putting college on credit can be a very bad deal.
Demos conducted a nationwide survey of low- and middle-income households in early 2012. The findings in this brief summarize the relationship between college costs and credit card debt, and its impact on students and their parents.
A new report from the New York Fed suggests that even while the rest of household debt improved since March, driven by decreasing credit card and housing debt, student loans have worsened.
Many Florida families have been paying up to 25 percent of median income for public in-state college costs — out of reach for some middle-class parents who have taken recent pay cuts or lost jobs, according to a new study.
It seems there is little real relief on the horizon.
“If you’re coming out of college with an average number of $20,000 to $25,000 in debt and there’s no job out there, you’ve got a real problem,” said John Quinterno, a researcher who has studied the consequences of student debt.
Last summer, on her final day as the Chairman of the FDIC, Shelia Bair decried the short-termism that has overtaken both Wall Street and Washington, where “[o]ur financial markets remain too focused on quick profits, and our political process is driven by a two-year election cycle and its relentless demands for fundraising.” This short-termism has taken hold of the reins of our larger political system and increasingly characterizes policy initiatives at every level of government.
In the past three decades, college costs have risen significantly faster than inflation and are now at roughly 25 percent of the average household's income. This isn't true just for private schools.
States are spending less money on public colleges than they did in the past. According to an article in the Chronicle of Higher Education, adjusted for inflation, state support for public colleges and universities has fallen by about 26 percent per full-time student in the last 20 years.
Adjusted for inflation, state support for each full-time public-college student declined by 26.1 percent from 1990 to 2010, forcing students and their families to shoulder more of the cost of higher education at a time when family incomes were largely stagnant, according to a report released on Monday by the think tank Demos.