literature review #3

2. MIN, ZHAN. "The Impact Of Youth Debt On College Graduation."Journal Of Sociology & Social Welfare 41.3 (2014): 133-156.Academic Search Premier. Web. 2 Dec. 2014.

3.  This journal focuses on the impact of increasing tuition and the deregulation of the financial industry in the 1990s.  The journal recognizes that student debt isn’t only limited to student loans and that it also includes credit card debt from education induced expenses such as textbooks.  With less regulation in the credit card industry, companies are able to administer more cards to young adults who will use these cards to cover the expenses that student loans are unable to.  The journal targets the negative effect of the use of these cards in which some students acquire so much debt that the stress forces them to drop out and now they are worse off than had they never enrolled in college in the first place.

4. Dr. Zhan received her PHD in Social Work from Washington University in 2001 and is now doing research in the School of Social Work.  Her research includes low income families and the barriers they face in postsecondary education.  She mainly focuses on asset development of these lower income families and how they can attain economic security.

5.  Unsecured debt- debt in which there are no assets to hold against it.  For example credit card debt

Differential impact of debt- the different effect of debt on students depending on their parent’s financial background.  Students with more affluent parents will not fear the debt as much because they know their parents can support them.

6. “As of 2010, the average amount of debt for a Bachelor degree graduate from a four-year public college is $12,300 (College Board, 2011)” (Zhan 133).

“Financial aid policy has shifted from need-based aid toward merit-based aid and educational tax credits (Long & Riley, 2007), and federal loans and private loans are becoming more accessible to youth and their families (College Board, 2009). As a result, taking loans has become the “norm” for many families to cover college costs” (Zhan 133).

“Findings from a recent national survey by Sallie Mae (2009) indicate that both credit card ownership and credit card balances have risen sharply during recent years among college students.” (Zhan 134)

7.  This journal adds value to my paper because it adds a new dynamic that I had not taken into account originally.  This dynamic of credit card debt brings a new perspective as to why the dropout rate is so high.  Since credit card debt is immediately collectable it adds pressure to the student who may have to work even longer hours in order to pay it off, therefore affecting their grades negatively and diminishing the students confidence.