Students from poorer families are struggling more to pay back their student loans, according to a new report. In theory, student loans are supposed to increase economic mobility by providing low-income students with money they wouldn’t otherwise have to attend college. But a new report suggests the loans may be helping to widen the gaps between the haves and have-nots.
Some highlights from the report: Students from poor families who entered school in the 2003-2004 academic year still had 91% of their debt remaining on average 12 years later
Students from wealthier families who entered school in the 2003-2004 […]
View Original: Students from poor families are struggling way more to pay back their student loans
New Haven, Conn. — Settling on a parenting style is challenging. Is it better to be strict or more lenient? Have helicopter parents found the right approach to guiding their children’s choices?
A new study co-authored by Yale economist Fabrizio Zilibotti argues that parenting styles are shaped by economic factors that incentivize one strategy over others.
Zilibotti and co-author Matthias Doepke, a professor of economics at Northwestern University, assert in a paper published in the journal Econometrica that economic conditions, especially inequality and return to education, have influenced child-rearing strategy."All parents want their children to succeed, and we argue that the […]
View Original: Pushy or laid back? Economic factors influence parenting style
College education in the United States continues to climb . Not all college majors are created equal if you’re looking to make the big bucks (specifically, these are the ones you should avoid if you want to make any money at all ), but it seems like an agreed-upon fact that some sort of college degree is better for your bottom line than no college degree at all. But, according to The Atlantic , having a bachelor’s degree may not matter as much as one would think.
A new working paper by Jesse Rothstein, a professor of public policy and […]
View Original: Here’s Why Going to College Actually Doesn’t Change Your Income That Much
Jacquelyn Martin / AP America Hernandez, who is now 34, can divide her working life into two periods: before DACA protections kicked in, and after. Before the Deferred Action for Childhood Arrivals program was created in 2012, Hernandez, whose parents brought her to the U.S. from Mexico when she was three months old, was not eligible to work legally in the United States. Until her late 20s, she cobbled together a living working at various restaurants—not what she’d wanted to do when she graduated with a bachelor’s degree from Fresno State in 2003. She’d had two job offers in […]
View Original: From ‘Dream Jobs’ to Bussing Tables Again
There’s a certain type of financial confessional that has had a way of going viral in the post-recession era. The University of Chicago law professor complaining his family was barely keeping their heads above water on $250,000 a year . This hypothetical family of three in San Francisco making $200,000, enjoying vacations to Maui, and living hand-to-mouth. This real New York couple making six figures and merely “ scraping by .”
In all of these viral posts, denizens of the upper-middle class were attempting to make the case for their middle class-ness. Taxes are expensive. Cities are expensive. Tuition is […]
View Original: The Hoarding of the American Dream
Illustration: Nicolás Zúñiga For an increasing number of education and political leaders, bringing debt-free higher education back to California is long overdue.
When Bernie Sanders, and then Hillary Clinton, made debt-free higher education a byword of the 2016 presidential race, University of California graduates like retired Los Angeles anesthesiologist Steve Auer unexpectedly found themselves the poster children for a time when free college tuition was the norm in California, rather than the radical proposition it seems today.
“Education was nearly free,” the 75-year-old Auer recalls in a phone interview with Capital & Main . “Tuition, of course, was nominal, was […]
View Original: California Game Changers: Making College Free Again
IMAGE: Pay-it-forward financing programs could have differing effects on college access and voter support for tax subsidies, depending on how individual voters fare economically, suggests a paper co-written by University of… view more Credit: Photo by L. Brian Stauffer CHAMPAIGN, Ill. — Pay-it-forward college financing programs that enable students to pay tuition upon departure rather than entry may make college more accessible to greater numbers of students in the U.S., a new analysis suggests.
And despite some critics’ fears, PIF programs could increase – rather than erode – public funding for higher education, say the researchers, higher education finance expert […]
View Original: Pay-it-forward college financing policies examined in new study
The sad fact is that American kids today may be the first generation who do not eclipse their parents’ economic status. In fact, Americans occupy two separate worlds when it comes to moving up the economic ladder. A small minority of us, anywhere from a fifth to a third who come from advantaged backgrounds, can expect economic mobility on par with any advanced nation. But, tragically, anywhere from two-thirds to 80 percent of Americans who are in less advantaged situations will see their economic prospects be as limited as those in the developing world. And it’s not just our […]
View Original: Violent Crime’s Toll on Economic Mobility
Shineade Sey is about to move. After three years in a flat in south-east London, she is selling up and buying a house with her partner. Sey, who is half Jamaican and half Ghanaian, says she is lucky – when her former employer was bought out she got a payment that meant she was able to buy her first home. “Without that, I would probably still be saving now,” she says. While her white friends had already bought by the time she could afford to, she was among the first of her friends of black descent. “Their parents weren’t […]
View Original: We know there’s a housing crisis – but why is it so much worse for black families?
Photo by Marc Monaghan
Hundreds of high school seniors gather to announce where they’ll be attending college at a Chicago Scholars celebration on May 3, 2016.
In 1991, I was admitted to Southern Illinois University at Carbondale.My mother worked as a telephone operator and didn’t have the money to pay the $3,000 in yearly tuition. But the cost wasn’t a barrier for me, because I was considered a low-income student and qualified for financial aid.After the grants and scholarships, I had to come up with just $186 – money I made by working summers as a van driver – and was […]
View Original: Public universities increasingly out of reach for Illinois’ low-income students