1. Student debt: good, bad, and misunderstood
Changes in who goes to college and where they go
It's not a simple question of good or bad
2. Student loan programs and the realities of student debt
The basics of policy design
What is the purpose of government student loans?
There are multiple ways to measure student debt: How much do individual students borrow? ; How much do individuals owe? ; How much have college graduates borrowed? ; Graduate students borrow much more than undergraduates
How do students' borrowing patterns differ?: Older students borrow more than younger students ; Students enrolled in for-profit institutions borrow more than other students ; Each state is different
Why has student debt grown?: College prices have risen rapidly ; Students also borrow to cover living expenses ; Increases in student aid have softened the impact of rising tuition ; Most incomes have not grown, but inequality has
When borrowers don't repay their debts: Too many borrowers default on their student loans ; Insufficient income is not the only possible explanation for not making payments ; Default rates are highest for students from for-profit institutions and community colleges ; Smaller debts, bigger problems
3. Putting the stories into perspective
Media sensationalism and the development of the common wisdom
Policy ideas arising out of the panic
The positive impact of student loans
Society benefits from higher education and so does the individual
Public benefits are not the same as public goods
Individual decisions: are students wrong to incur debt for college?
Going to college leads to higher earnings
Everyone doesn't have the same great outcome
4. The evidence about the impact of student debt
Focusing on total outstanding student debt
What is the right comparison?
It's not easy to study the impact of student debt
Studies of the impact of student debt: Does student debt stop people from accumulating wealth? ; Does student debt stop people from starting businesses? ; Does student debt stop people from buying houses?
Perceptions versus reality
Student debt and the alternatives
5. How can public policy help?
Should subsidizing student borrowers be at the top of the social agenda?
Preventing problems: Excluding institutions that don't serve students well ; Helping students make better choices ; A comprehensive strategy for limiting overborrowing ; Is information enough?
Managing existing debt: big ideas: Improve income-driven repayment ; Make repayment easier ; Don't forgive all student debt!
Managing existing debt: easier fixes: Is lowering interest rates really a good idea? ; Don't let so much unpaid interest accumulate ; Don't garnish social security payments ; Private loans should not be called "student loans" ; Treat student debt like other debt in bankruptcy ; Provide lines of credit instead of preset loan amounts ; Put reasonable limits on the amounts students and parents can borrow ; Don't tax forgiven loan balances ; Improve loan servicing ; Concluding thoughts.
