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.