Video Resource: Where Is The Student Loan Crisis Happening?
If you are looking for an extension activity, have your students dive deeper and read the introduction (first 5 pages) of this research report to understand more details about where the student loan crisis is having the biggest impact. This should pique their interest:
Between 2000 and 2014, the total volume of outstanding federal student debt nearly quadrupled to surpass $1.1 trillion, the number of student loan borrowers more than doubled to 42 million, and default rates among recent student loan borrowers rose to their highest levels in twenty years. This increase in debt and default and more widespread concern about the effects of student loan debt on young Americans’ lives has contributed to a belief that there is a crisis in student loans. Using new administrative data sources, we examine recent changes in the market for federal student loans with a particular focus on the sources of rising default rates, the roles played by educational institutions and the labor market outcomes of borrowers.
Key questions for them to answer:
- For those students having the most difficulty paying back their loans, what are they types of schools they are attending?
- Why do you think these students are struggling the most?
- What are the job prospects for students from these schools generally speaking?
- How can you use the results of this research to make the best decision about what college to attend?
Check out the NGPF Case Study on What College Should I Attend?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.