Literature review 2

2. Chen, R., & Wiederspan, M. (2014). Understanding the Determinants of Debt Burden among                           College Graduates. Journal Of Higher Education, 85(4), 565-598.

3. This article focuses on the debt students incur during the education process by taking out loans.  It examines the many different types of loans and shows the default rate for each and compares them to default rates of a decade ago.  The article takes a statistical approach to the student debt problem and provides many sources of data collection.

4. Rong Chen is a professor of Statistics at Rutgers university and does research including, Nonlinear and Multivariate time series analysis, Monte Carlo Methods and Statistical applications in science including Engineering and Business.

5. cohort default rate- he percentage of a school's borrowers who enter repayment on certain loans during a federal fiscal year (October 1 to September 30) and default prior to the end of the next one to two fiscal years.

aggregate unsubsidized loan- the total of unsubsidized loans

6. “Between 1995–96 and 2007–08, the percentage of undergraduates borrowing increased from 37.8% to 46.2% for public four-year institutions and from 48.5%  to 58.9% for private, nonprofit 4-year institutions (Bersudskaya & Wei, 2011)” (Chen).

“The financial aid system has shifted from what was, at one time, comprised primarily of need-based aid to a system where student loans are the predominant form of aid (Callan, 2001; Hearn & Holdsworth, 2004)”  (Chen).

“According to the U.S. Department  of Education (2013), the projected default rates for loans that originated  in 2013 are 23% of those taking out subsidized loans, 18% of those  with unsubsidized loans, and 9% for PLUS loans”  (Chen566)

7. This article is of value to me because of the copious amounts of data and comparisons made throughout the work.  Having statistical data to support my argument will ensure that I have a good base for my argument and am not just making wild assumptions.  There are also many parts about students defaulting on their loans which is an important aspect to think of when trying to decide if college is the right decision for yourself.

Literature review #1

2. Kantrowitz, M. (2002). Causes of faster-than-inflation increases in college tuition. College and        University, 78(2), 3-10. Retrieved from       http://search.proquest.com/docview/225612640?accountid=13626

3.This article is about the prediction of tuition rates in the future and the economic forces that are effecting it.  The articles main focus is constructing a model in which Kantrowitz attempts to predict the trend of tuition increases using revenue and cost drivers.  The article justifies how the formulas were created that are used to drive the model and displays the logic behind them.

4. Mark Kantrowitz is the author of an Amazon best seller called Secrets to Winning a Scholarship and is the publisher of two websites FinAid and Fastweb. He has a bachelors in Mathematics from MIT and a masters in computer science from CMU.  He has testified before congress involving student aid and has been interviewed by news outlets such as, Wall Street Journal, New York Times, USA Today, MSN and many others.

5. Cost drivers-  A factor that influences or contributes to the expense of certain business operations

FTE enrollment growth-  Full Time Equivalent students is one of the key metrics for measuring the contribution of academics in third level education, number of supported students.

6.  “USA Today reports, for example, that students at four-year public colleges are facing double-digit increases in tuition and fees, with some schools increasing rates by as much as 26 percent (Marklein 2002)” (Kantrowitz).

“Not only are college tuition rates increasing, but so are the percentage of students receiving financial aid and the average amount of financial aid. This poses a serious problem for colleges, because eventually they will reach the point of diminishing returns. When 75 percent of a college's student population is receiving financial aid, the college nets only 25 cents of each $1 increase in college tuition” (Kantrowitz).

“The full model is not quite this simple, because the Financial Aid expenditure category is not independent of the Tuition and Fees revenue category. To account for changes in the Financial Aid category, the model computes the product of the Percentage of Students Receiving Aid with the Average Aid Percentage. This yields the Total Tuition Discount, which is the same as the ratio of the Financial Aid category to the Tuition and Fees category” (Kantrowitz).

7.  This article is of value to me because it justifies my assumption that tuition prices will continue to increase and gives me a basis for my prediction.  Seeing how the prices will change over the next few years allows me to justify asking if it will be worth it for high school graduates to seek higher education or if they would be better off pursuing a career without a degree and without debt.

blog post 3

For my topic I focused on individualistic culture and its acceleration of privatization of universities through public pressure.  With privatization comes a need to turn a profit and an increase in the competitiveness of universities among one other to show the biggest return to investors, mostly at the expense of the students.  In "Default: The Student Loan Documentary." it is said that “Grants that you don’t have to pay back were available to cover  75% or more of the cost of an average institution, that sounds like a fantasy to us now it’s completely switched.  We’ve come from relying on grants to relying on loans putting the burden of paying these huge costs onto students and their families” (Maneghello). The transition from grants to loans is a perfect example of individualistic culture having its influences in college funding because unlike grants, loans promise a return on investment instead of just the knowledge that you are helping to improve society provided by grants.
 

1.       Meneghello, Aurora. “Default: The Student Loan Documentary.”  Online video.    YouTube.  16 Feb 2013.  Web. Available at  

     http://www.youtube.com/watch?v=wvQR93C6n2E.