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By: Dalia, Miriam, Nurbergen, & Victor

$1.2 Trillion in Student Debt

Budget Cuts in State Government Spending for Education


Funding athletics
Spending too much on student luxury recreations/housing
Financial Aid Packages
Government Subsides

Types of Loans
1)
2)
3)
4)

Direct Subsidized Loans-loans made to eligible undergraduates who


demonstrate the financial need for college and university.
Direct Unsubsidized-loans made eligible to any grade level students but the
need for financial need is not required.
Direct PLUS Loans-loans made for graduate and professional students to
help pay for school expenses not covered by other financial aid.
Federal Perkins Loan Program- the school is the lender

Deeper In Debt

NCAA

$871.6 million in Revenue


81% comes from broadcast agreements with Turner/CBS
11% comes from sponsoring championships
60% is distributed to Division 1 schools to help fund the athletic programs
and scholarships

Average cost of athlete vs student in 2010


$91,336

$13,368

Student Luxury Recreations and Housing

Makes college more expensive without increasing the value of the diploma
To compete with other colleges and universities around the country
Seal the deal with incoming college students using luxury housing and
recreations

CSUN

University of
Alabama in
Birmingham

UCLA

Vanderbilt
University

Financial Aid Packages

Public Policy

Improved their own financial aid programs to attract low income students
Two non-mutually exclusive ways

to expand or introduce variety of government grants/scholarship programs

increase the amount of aid


alter the composition of aid packaging changing the mix of grants, loans and jobs

College cost and financial aid packages are more likely correlated

Government Subsidies

Public Policy
Student loans
Grants
Tax Credits
Allow more people to apply for college
Supply and Demand = more demand for higher education

Massive Burden of Student Loan Debt

In 2010, nearly two-thirds of college graduates left school with student loan
debt.
Those with greater levels of debt are more likely to choose higher-paying
jobs, less likely to apply to graduate school, and less likely to purchase a
home.

Student Loans Affect Marriage?

Fixed costs associated with marriage.

Cost of Wedding
Purchase of a Home
Household Equipment

Forcing young adults to delay critical markers of adulthood.

Differences Between Genders:

Do men get more privileges in the work force than women?

Overview of The Financial Crisis in College Education 2015


https://www.youtube.com/watch?v=uS3qi5BlrqU

Possible Solutions to Loan Debt/Rising Costs

Forgiving student debt.


Allow Bankruptcy for Student Debt.
Less Luxury and athletic programs, make education main priority.
Eliminate Govt subsidies.

Work Cited

Martin, Robert. Why Tuition Costs Are Rising so Quickly . Challenge 45.4 (2002): 88-108. Web
Bozick, R, and A Estacion. "Do Student Loans Delay Marriage? Debt Repayment and Family
Formation in Young Adulthood." Demographic Research, 30 (2014): 1865-1891.
Linsenmeier, David M, Harvey Rosen, and Cecilia Elena Rouse. Financial Aid Packages and
College Enrollment Decisions: An Economic Case Study. The Review of Economics and Statistics,
88.1 (2006): 126-145.
"Why Is Higher Education So Expensive? - Learn Liberty." YouTube. YouTube, 10 Dec. 2012. Web.
02 Dec. 2015. <https://www.youtube.com/watch?v=8GTa_swC-OE>.
"Student Loans: More Debt, More Defaults, More Problems." YouTube. YouTube, 30 May 2012.
Web. 02 Dec. 2015. <https://www.youtube.com/watch?v=6p0HyjtfaMg>.
Smith DR. The Curious (And Spurious?) Relationship Between Intercollegiate Athletic Success
and Tuition Rates. International Journal of Sport Finance, 7.1 (2012): 3-18.