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ERIC Number: ED568720
Record Type: Non-Journal
Publication Date: 2016
Pages: 5
Abstractor: As Provided
Reference Count: N/A
ISBN: N/A
ISSN: N/A
Issues 2016: Is There a Student Debt Crisis?
Eden, Max
Manhattan Institute for Policy Research
Student debt is a convenient target in a presidential election year, but it obscures the true crisis: high dropout rates from low-quality postsecondary institutions and the unmanageable debt borne by students of those institutions. And despite rising student debt, monthly loan payments as a share of income have remained steady, added earnings having more than offset the cost of debt for most borrowers, and Income-Based Repayment (IBR) plans offer borrowers protection from ballooning monthly payments. Key findings include: (1) Even as overall student debt has been rising, the monthly burden on most borrowers has not increased; (2) Those struggling with student debt are overwhelmingly "nontraditional borrowers" who took out loans to attend, but often did not graduate from, two-year and for-profit institutions; and (3) The benefits of many proposals to reduce student debt burdens flow overwhelmingly to college graduates, the group least in need of government assistance.
Manhattan Institute for Policy Research. 52 Vanderbilt Avenue, New York, NY 10017. Tel: 212-599-7000; Fax: 212-599-3494; Web site: http://www.manhattan-institute.org
Publication Type: Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Manhattan Institute for Policy Research