A Brief Introduction to Student Loans

Beth Akers and Matthew M. Chingos
Additional contact information
Beth Akers: Brookings Institution's Center on Children and Families
Matthew M. Chingos: Urban Institute

A chapter in Game of Loans: The Rhetoric and Reality of Student Debt, 2016 from Princeton University Press

Abstract: College tuition and student debt levels have been rising at an alarming pace for at least two decades. These trends, coupled with an economy weakened by a major recession, have raised serious questions about whether we are headed for a major crisis, with borrowers defaulting on their loans in unprecedented numbers and taxpayers being forced to foot the bill. Game of Loans draws on new evidence to explain why such fears are misplaced—and how the popular myth of a looming crisis has obscured the real problems facing student lending in America. Bringing needed clarity to an issue that concerns all of us, Beth Akers and Matthew Chingos cut through the sensationalism and misleading rhetoric to make the compelling case that college remains a good investment for most students. They show how, in fact, typical borrowers face affordable debt burdens, and argue that the truly serious cases of financial hardship portrayed in the media are less common than the popular narrative would have us believe. But there are more troubling problems with student loans that don’t receive the same attention. They include high rates of avoidable defaults by students who take on loans but don’t finish college—the riskiest segment of borrowers—and a dysfunctional market where competition among colleges drives tuition costs up instead of down. Persuasive and compelling, Game of Loans moves beyond the emotionally charged and politicized talk surrounding student debt, and offers a set of sensible policy proposals that can solve the real problems in student lending.

Keywords: economics; social; society; academics; higher; education; market; debt; loans; freddy; mac; fannie; mae; subsidization; students; college; market (search for similar items in EconPapers)
Date: 2016
ISBN: 9780691167152
References: Add references at CitEc
Citations:

Downloads: (external link)
http://assets.press.princeton.edu/chapters/s10810.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pup:chapts:10810-1

Access Statistics for this chapter

More chapters in Introductory Chapters from Princeton University Press
Bibliographic data for series maintained by Webmaster ().