economics

Showing 182 posts tagged economics

Is a Student Loan Crisis on the Horizon? 

College tuition and student debt levels have been increasing at a fast pace for at least two decades.  These well-documented trends, coupled with an economy weakened by a major recession, have raised serious questions about whether the market for student debt is headed for a crisis, with many borrowers unable to repay their loans and taxpayers being forced to foot the bill.
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Is a Student Loan Crisis on the Horizon?

College tuition and student debt levels have been increasing at a fast pace for at least two decades.  These well-documented trends, coupled with an economy weakened by a major recession, have raised serious questions about whether the market for student debt is headed for a crisis, with many borrowers unable to repay their loans and taxpayers being forced to foot the bill.

micdotcom shares:

 8 charts parents of millennials need to see

There’s a simple reason young adults are living at home in higher numbers: For many, moving out means living in poverty.

The numbers are jarring. According to the Pew Research Center, a whopping 56% of 18-24 year olds lived at home in 2012, the highest rate since the 1970s. Today’s young adults are taking longer to reach life milestones like taking out a mortgage or getting married. The New Republic has dubbed this trend the Great Delay.

Read more | Follow micdotcom 

‘Ivory Tower’ explores why American higher education is so pricey

The rise in U.S. college tuition is unsustainable. That’s the argument of a new television documentary, “Ivory Tower,” which tackles growing worries and critique over college costs and student debt. Jeffrey Brown talks to filmmaker Andrew Rossi about the origins of rising costs and financial competition among institutions, plus ideas about how to turn around the trend.

For Poor, Highs and Lows of Housing Costs Hurt Kids’ Academic Skills

When a family spends more than half of its income on a home, their children’s reading and math abilities tend to suffer, according to a new study by Johns Hopkins University. This is also the case when they spend too little — less than 20 percent of their income. 
In fact, children’s academic skills seem to thrive best when families spend about one third of their income on housing.

image via flickr:CC | JSmith Photo High-res

For Poor, Highs and Lows of Housing Costs Hurt Kids’ Academic Skills

When a family spends more than half of its income on a home, their children’s reading and math abilities tend to suffer, according to a new study by Johns Hopkins University. This is also the case when they spend too little — less than 20 percent of their income.

In fact, children’s academic skills seem to thrive best when families spend about one third of their income on housing.

image via flickr:CC | JSmith Photo

Public Schools Are Hurting More in the Recovery Than in the Recession

Once the recession ended, however, so did the stimulus — long before state and local governments were ready to pick up the slack. Federal per-student spending fell more than 20 percent from 2010 to 2012, and it has continued to fall. State and local funding per student were essentially flat in 2012, the most recent year for which data is available.
The result: Total school funding fell in 2012 for the first time since 1977, the Census Bureau reported last month. Adjusting for inflation and growth in student enrollment, spending fell every year from 2010 to 2012, even as costs for health care, pension plans and special education programs continued to rise faster than inflation.1 Urban districts have been particularly hard-hit by the cuts in federal education spending: Nearly 90 percent of big-city school districts spent less per student in 2012 than when the recession ended in 2009.2
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Public Schools Are Hurting More in the Recovery Than in the Recession

Once the recession ended, however, so did the stimulus — long before state and local governments were ready to pick up the slack. Federal per-student spending fell more than 20 percent from 2010 to 2012, and it has continued to fall. State and local funding per student were essentially flat in 2012, the most recent year for which data is available.

The result: Total school funding fell in 2012 for the first time since 1977, the Census Bureau reported last month. Adjusting for inflation and growth in student enrollment, spending fell every year from 2010 to 2012, even as costs for health care, pension plans and special education programs continued to rise faster than inflation.1 Urban districts have been particularly hard-hit by the cuts in federal education spending: Nearly 90 percent of big-city school districts spent less per student in 2012 than when the recession ended in 2009.2

Will loan forgiveness offer long-term student debt solution?

The average person graduating from college in 2013 borrowed nearly $30,000 in student debt. To help Americans overburdened by their loans, President Obama signed a new executive order that expands on a 2010 law that capped federal loan repayments at 10 percent of borrowers’ monthly income.

BOLDING FOR EMPHASIS: “If the costs keep going up, what’s the point in just forgiving loans?” High-res

Will loan forgiveness offer long-term student debt solution?

The average person graduating from college in 2013 borrowed nearly $30,000 in student debt. To help Americans overburdened by their loans, President Obama signed a new executive order that expands on a 2010 law that capped federal loan repayments at 10 percent of borrowers’ monthly income.

BOLDING FOR EMPHASIS: “If the costs keep going up, what’s the point in just forgiving loans?”

School Spending Increases Linked to Better Outcomes for Poor Students

In districts that substantially increased their spending as the result of court-ordered changes in school finance, low-income children were significantly more likely to graduate from high school, earn livable wages, and avoid poverty in adulthood.So concludes a working paper published this month by the National Bureau of Economic Research, or NBER, a private, nonpartisan research organization with headquarters in Cambridge, Mass.

image via flickr:CC | SalFalko

School Spending Increases Linked to Better Outcomes for Poor Students

In districts that substantially increased their spending as the result of court-ordered changes in school finance, low-income children were significantly more likely to graduate from high school, earn livable wages, and avoid poverty in adulthood.

So concludes a working paper published this month by the National Bureau of Economic Research, or NBER, a private, nonpartisan research organization with headquarters in Cambridge, Mass.

image via flickr:CC | SalFalko

Is College Worth It? Clearly, New Data Say

A new set of income statistics answers those questions quite clearly: Yes, college is worth it, and it’s not even close. For all the struggles that many young college graduates face, a four-year degree has probably never been more valuable.
The pay gap between college graduates and everyone else reached a record high last year, according to the new data, which is based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That’s up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s.

Is College Worth It? Clearly, New Data Say

A new set of income statistics answers those questions quite clearly: Yes, college is worth it, and it’s not even close. For all the struggles that many young college graduates face, a four-year degree has probably never been more valuable.

The pay gap between college graduates and everyone else reached a record high last year, according to the new data, which is based on an analysis of Labor Department statistics by the Economic Policy Institute in Washington. Americans with four-year college degrees made 98 percent more an hour on average in 2013 than people without a degree. That’s up from 89 percent five years earlier, 85 percent a decade earlier and 64 percent in the early 1980s.

Master’s degrees are as common now as bachelor’s degrees were in the ’60s

More than 16 million people in the US — about 8 percent of the population — now have a master’s, a 43 percent increase since 2002.

But the growth hasn’t been spread around evenly. The story of the past four decades isn’t just about how master’s degrees became as common now as bachelor’s degrees were in the 1960s. It’s about how the US has redefined which fields need or reward postgraduate study.

Your High School GPA Could Affect Your Income

A team of researchers led by Michael T. French, professor of health economics at the University of Miami (UM), finds that high school grade point average (GPA) is a strong predictor of future earnings.
The findings, published recently in the Eastern Economic Journal, show that a one-point increase in high school GPA raises annual earnings in adulthood by around 12 percent for men and 14 percent for women.
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Your High School GPA Could Affect Your Income

A team of researchers led by Michael T. French, professor of health economics at the University of Miami (UM), finds that high school grade point average (GPA) is a strong predictor of future earnings.

The findings, published recently in the Eastern Economic Journal, show that a one-point increase in high school GPA raises annual earnings in adulthood by around 12 percent for men and 14 percent for women.

Student Debt Grows Faster at Universities With Highest-Paid Leaders, Study Finds

At the 25 public universities with the highest-paid presidents, both student debt and the use of part-time adjunct faculty grew far faster than at the average state university from 2005 to 2012, according to a new study by the Institute for Policy Studies, a left-leaning Washington research group.
The study, “The One Percent at State U: How University Presidents Profit from Rising Student Debt and Low-Wage Faculty Labor,” examined the relationship between executive pay, student debt and low-wage faculty labor at the 25 top-paying public universities.

image via flickr:CC | SalFalko

Student Debt Grows Faster at Universities With Highest-Paid Leaders, Study Finds

At the 25 public universities with the highest-paid presidents, both student debt and the use of part-time adjunct faculty grew far faster than at the average state university from 2005 to 2012, according to a new study by the Institute for Policy Studies, a left-leaning Washington research group.

The study, “The One Percent at State U: How University Presidents Profit from Rising Student Debt and Low-Wage Faculty Labor,” examined the relationship between executive pay, student debt and low-wage faculty labor at the 25 top-paying public universities.

image via flickr:CC | SalFalko

theatlantic:

Kids Are Using Bitcoin to Buy Fake IDs Online

The beauty of bitcoin, many of those who use the currency will tell you, is that it’s decentralized. You don’t have to bother with a bank, which means you don’t necessarily leave the kind of paper trail that many other transactions produce. From the user perspective, paying with bitcoin is basically like using cash—only you can do it online. 

So it’s fitting that bitcoin is the currency of choice among online vendors of fake IDs, some of whom now offer discounts to customers who pay that way. Other vendors have gone bitcoin-only, according to a subreddit discussion of popular fake ID sites.
It must be noted that bitcoin isn’t just an underworld currency—in fact, not everyone agrees that it’s currency at all.
Read more. [Image: Reuters]
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theatlantic:

Kids Are Using Bitcoin to Buy Fake IDs Online

The beauty of bitcoin, many of those who use the currency will tell you, is that it’s decentralized. You don’t have to bother with a bank, which means you don’t necessarily leave the kind of paper trail that many other transactions produce. From the user perspective, paying with bitcoin is basically like using cash—only you can do it online. 

So it’s fitting that bitcoin is the currency of choice among online vendors of fake IDs, some of whom now offer discounts to customers who pay that way. Other vendors have gone bitcoin-only, according to a subreddit discussion of popular fake ID sites.

It must be noted that bitcoin isn’t just an underworld currency—in fact, not everyone agrees that it’s currency at all.

Read more. [Image: Reuters]