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36 posts on "Education"

May 19, 2017

Hey, Economist! Is Now a Good Time to Be Graduating from College?



LSE_2017_Hey, Economist! Is Now a Good Time to Be Graduating from College?

With the 2017 college graduation season in full swing, we thought it would be helpful to take stock of the job prospects for recent college graduates. Is now a good time to be graduating from college? Publications editor Trevor Delaney caught up with Jaison Abel and Richard Deitz, two economists in our Research and Statistics Group, to discuss some of their work on the labor market for recent college graduates.

Continue reading "Hey, Economist! Is Now a Good Time to Be Graduating from College?" »

Posted by Blog Author at 7:00 AM in Education, Hey, Economist!, Labor Economics, Unemployment | Permalink | Comments (2)

April 03, 2017

Diplomas to Doorsteps: Education, Student Debt, and Homeownership



LSE_Diplomas to Doorsteps: Education, Student Debt, and Homeownership

Evidence overwhelmingly shows that the average earnings premium to having a college education is high and has risen over the past several decades, in part because of a decline in real average earnings for those without a college degree. In addition to high private returns, there are substantial social returns to having a well-educated citizenry and workforce. A new development that may have important longer-term implications for education investment and for the broader economy is a significant change in the financing of higher education. State funding has declined markedly over the past two decades, a trend that has coincided with a significant increase in college tuition. To cover the rising cost of college, students and families have increased their reliance on student loans, funding a greater share of an increasing overall college cost. While the federal student loan program has undoubtedly helped mitigate the impact of higher costs on college access and enrollment, more and more students now leave college with higher amounts of debt. Given these trends, it is critical to understand whether holding student debt has affected young Americans’ later life outcomes, such as homeownership.

Continue reading "Diplomas to Doorsteps: Education, Student Debt, and Homeownership" »

Posted by Blog Author at 10:31 AM in Education, Household Finance, Labor Economics, Student Loans | Permalink | Comments (0)

At the N.Y. Fed: Press Briefing on Household Borrowing with Close-Up on Student Debt



LSE_At the N.Y. Fed: Press Briefing on Household Borrowing with Close-Up on Student Debt

An examination of recent developments in household borrowing was the focus of a press briefing held this morning at the New York Fed. President William Dudley offered opening remarks on the latest developments, then Bank economists briefed the press on their analysis of household indebtedness, placing a spotlight on student loans. Their research is based on the New York Fed Consumer Credit Panel—which is based on Equifax credit report data—as well as data from the National Student Clearinghouse. The presentation contained three components: (1) an analysis how aggregate household debt today differs from its 2008 peak, (2) new evidence on student debt growth, delinquency and repayment, and (3) an investigation of the relationship between homeownership, student debt, and educational attainment.

Continue reading "At the N.Y. Fed: Press Briefing on Household Borrowing with Close-Up on Student Debt" »

Posted by Blog Author at 10:30 AM in Credit, Education, Household Finance, Student Loans | Permalink | Comments (0)

November 28, 2016

At the N.Y. Fed: Convening on the Evolution of Work



LSE_Convening on the Evolution of Work

The Federal Reserve Bank of New York recently hosted “The Evolution of Work,” a conference that brought together thought leaders from academia, government, industry, labor, and the nonprofit sector to explore how the nature of work is evolving, including the expanding role of technology, shifts in employee work arrangements and employer-employee relationships, and the effects of these changes on workforce and community development strategies. The gathering was cosponsored by the Board of Governors of the Federal Reserve System and the Freelancers Union.

Continue reading "At the N.Y. Fed: Convening on the Evolution of Work" »

Posted by Blog Author at 8:38 AM in Education, Employment, Labor Economics, Macroecon | Permalink | Comments (0)

September 09, 2016

Who Falters at Student Loan Payback Time?



Editor’s note: The labels for “Elite private” and “Non-elite private, not-for-profit” institutions in the charts have been corrected; they were initially transposed. We regret the error. (September 12, 12:45 p.m.)

LSE_2016_Who Falters at Student Loan Payback Time?

This is the final post in a four-part series examining the evolution of enrollment, student loans, graduation and default in the higher education market over the course of the past fifteen years. In the first post, we found a marked increase in enrollment of 35 percent between 2000 and 2015, led mostly by the for-profit sector—which increased enrollment by 177 percent. The second post showed that these new enrollees were quite different from the traditional enrollees. Yesterday’s post demonstrated an unprecedented increase in loan origination amounts during this period—nearly tripling between 2000 and 2015. This surge was driven most prominently by a massive increase in the number of borrowers in the public community college sector and the private for-profit college sector. Given the large increase in the borrower pool and loan originations, it is paramount to understand the consequences of these changes for the student loan default rate. This post aims to do just that. We focus on three-year cohort default rates reported by the United States Department of Education. The three-year cohort default rate is defined as the percentage of a school's borrowers who enter repayment during a particular federal fiscal year—running from October 1 to September 30—and default prior to the end of the second following fiscal year. Most federal loans enter default when payments are more than 270 days past due.

Continue reading "Who Falters at Student Loan Payback Time?" »

Posted by Blog Author at 7:02 AM in Education, Expectations, Labor Economics, Student Loans | Permalink | Comments (0)

September 08, 2016

The Changing Role of Community-College and For-Profit-College Borrowers in the Student Loan Market



Editor’s note: The chart sources cited in this post have been corrected. (September 9, 12:55 p.m.)



In the first post in this series, we characterized the rapid transformation of the higher education market over the 2000-2015 period, a transformation that was led by explosive growth of the for-profit sector of higher education. In the second post, we found that most of this growth was driven by nontraditional students entering these institutions. Given this growth and the marked change in student composition, it is important to understand what impact these patterns might have on student loan originations, student loan volume, and the borrower pool in the various sectors of higher education. While a causal analysis is beyond the scope of this post, we instead examine descriptive patterns in these critical postsecondary outcomes. Was the growth in for-profit enrollment associated with a higher incidence of student loans? Were for-profit students, the main contributors of this growth, more or less likely to take student loans, and were they more or less likely to originate larger student loans? How about community-college borrowers, especially since community college enrollment increased noticeably over the period? This post focuses on these questions.

Continue reading "The Changing Role of Community-College and For-Profit-College Borrowers in the Student Loan Market" »

Posted by Blog Author at 7:00 AM in Credit, Education, Labor Economics, Student Loans | Permalink | Comments (0)

September 07, 2016

The Changing Face of the Higher Education Market



LSE_2016_The Changing Face of the Higher Education Market

The higher education landscape changed drastically over the last decade and a half. This evolution was largely characterized by the unprecedented growth of the private for-profit sector. In this post, we examine whether the evolution of the higher education market was associated with changes in the types of students who attended the institutions in various sectors of the market. Was the growth in enrollment spurred by an increased entry of traditional students? Or was it driven by an inflow of nontraditional students? Has student composition in higher education changed differentially between sectors? It is important for us to understand not only the growth in the higher education market but also which types of students contributed to this growth, because any changes in the composition of students may have implications for the composition of skilled workers in the labor market, for student loans, for loan repayment, and for the labor market returns to education investments.

Continue reading "The Changing Face of the Higher Education Market" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics | Permalink | Comments (0)

September 06, 2016

The Changing Higher Education Landscape



LSE_2016_The Changing Higher Education Landscape

The past decade and a half has seen dramatic changes in the higher education landscape, characterized by significant growth in enrollment. This growth has been concentrated mostly in for-profit schools, where enrollment skyrocketed in the first decade of the period, nearly quadrupling between 2000 and 2011. The post-2011 period has been marked by an abatement of this growth. These patterns have strong implications not only for the higher education market but also for the labor force and the economy more broadly. Therefore, it is essential to understand the evolution of the different sectors of higher education over the last sixteen years; in this post we aim to do just that. How have the different sectors of higher education changed during this period, in particular the for-profit sector? Is the story here more about enrollment in existing schools, or were there differential entries and exits of for-profit schools? This post is the first in a four-part series looking at different aspects of the changing higher education market, including enrollment growth and its composition, student loans, and student loan defaults.

Continue reading "The Changing Higher Education Landscape" »

Posted by Blog Author at 7:00 AM in Education, Labor Economics | Permalink | Comments (4)

August 11, 2016

Human Capital and Education in Puerto Rico



LSE_Human Capital and Education in Puerto Rico

Educational attainment is an important element of human capital; however a series of recent papers highlights the crucial role of the quality of education—which determines the skills actually learned, rather than the number of years spent in a classroom—as a main driver of growth. In fact, Hanushek and Woessmann argue that the importance of more appropriately measuring skills is seen in the very tight relationship between quality of skills, or knowledge capital, and growth. Moreover, the researchers state, “The knowledge capital–growth relationship suggests little mystery for East Asia, Latin America, or other regions: Growth rates are accounted for by cognitive skills.” Similarly, “Considering knowledge capital dramatically increases our ability to account for differences in growth.”

Continue reading "Human Capital and Education in Puerto Rico" »

Posted by Blog Author at 7:00 AM in Education, Human Capital, Puerto Rico, Regional Analysis | Permalink | Comments (3)

June 06, 2016

Just Released: Mapping the Differences in School Spending in New York City



LSE_Just Released: Mapping the Differences in School Spending in New York City

This morning, the Federal Reserve Bank of New York released a set of interactive visuals that present data on school spending and its various components—such as instructional spending, instructional support, leadership support, and building services spending—across all thirty-two community school districts (CSD) in New York City and map their progression over time. A key feature of these interactive visuals is that they present the data in two forms: as adjusted data, which control for student categories that receive differential funding from the City based on their needs, and as raw data that do not include this adjustment. The interactive features allow the user to easily view (and compare) the adjusted and raw data, to observe trends for different spending categories, and to compare spending profiles across community school districts for each form of data. Demographic and socioeconomic characteristics of each CSD can be viewed by clicking on the district of interest. Our purpose is to make data on education finance and education indicators more accessible to a broader audience, including education researchers.

Continue reading "Just Released: Mapping the Differences in School Spending in New York City" »

Posted by Blog Author at 7:00 AM in Education, Regional Analysis | Permalink | Comments (0)
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