These are the fascinating (and scary) statistics of student loan debt in America
Student loan debt is exploding in the U.S. That’s at least how New York Governor Andrew Cuomo characterized it while recently unveiling a set of measures to alleviate the burdens of debt in New York.
Student loan debt is exploding in the U.S. That’s at least how New York Governor Andrew Cuomo characterized it while recently unveiling a set of measures to alleviate the burdens of debt for New Yorkers. Other states – Washington, California, Connecticut, Maine – have recently attempted or adopted similar legislation. And overall, the nationwide data suggest Cuomo’s description might not be hyperbolic.
In total, there are about 44 million Americans who owe $1.4 trillion in student debt, and more than a quarter of students who left college in 2010 and 2011 have defaulted on their loans – up from 19 percent in 2005 and 2006.
How can data help us better understand student indebtedness, and the kinds of students most likely to default?
The New York Fed’s Liberty Street Economics blog recently published an extensive analysis that outlines some of the determining factors behind student loan default. Using a data set that matched New York Fed Consumer Credit Panel (CCP), based on Equifax data, to National Student Clearinghouse (NSC) education data, researchers Wilbert van der Klaauw, Michelle Jiang, Nicole Gorton, and Rajashri Chakrabarti formed a representative sample of young Amercian adults that they used to track default rates and education attainment over time. Their sample is limited to students born between 1980 and 1986, and who took out loans to finance their education.
Some of their findings weren’t exactly surprising, such as that students were more likely than their peers to default if they:
- Dropped out of school
- Attended a non-selective college
- Came from a disadvantaged background
Still, the exhaustive analysis provides an insight into subtler factors that contribute to student defaults.
The chart below shows that default rates were highest among students who attended for-profit schools. However, students who attended community college defaulted at similar rates.
The analysis also showed that students who graduated with a bachelor's degree had the lowest default rate.
For another analysis, the researchers separated the students in their sample by major into four broad groups: Arts/Humanities, Business, STEM, and Vocational, which included majors like aviation, cosmetology, and welding.
Students who majored in the arts showed significantly higher default rates, but researchers noted that:
"major matters much more among students at nonselective colleges: the gap in default rates between the best performing major and worst performing major is much smaller (3 percentage points by age thirty-three) among students at selective colleges than among students at nonselective colleges (8 percentage points by age thirty‑three)."
Finally, the researchers divided their sample into two groups based on the average income of the household in which they grew up, as determined by zip code. They found that students from less advantaged backgrounds showed higher default rates.
Ultimately, attending a four-year, for-profit college correlated most strongly with default, followed by dropping out of college. Summing up their analysis, the researchers wrote:
"This represents preliminary evidence that later life outcomes—for example, the ability to buy a home and maintain a strong credit score—may vary widely among student loan holders based on their educational choices and backgrounds."
Is paying for a college degree still worth it? It of course depends on which op-ed you want to read. But most of the data suggest that Americans with bachelor's degrees get hired more often than their peers.
The Lumina Foundation lays out steps for increasing access to quality post-secondary education credentials.
- America's post-high school education landscape was not created with the modern student in mind. Today, clear and flexible pathways are necessary to help individuals access education that can help them lead a better life.
- Elizabeth Garlow explains the Lumina Foundation's strategy to create a post-secondary education system that works for all students. This includes credential recognition, affordability, a more competency-based system, and quality assurance.
- Systemic historic factors have contributed to inequality in the education system. Lumina aims to close those gaps in educational attainment.
- In 2019, Lumina Foundation and Big Think teamed up to create the Lumina Prize, a search to find the most innovative and scalable ideas in post-secondary education. You can see the winners of the Lumina Prize here – congratulations to PeerForward and Greater Commons!
French newspapers report that the trial hasn't lived up to expectations.
- The French government initially invested in a rural solar roadway in 2016.
- French newspapers report that the trial hasn't lived up to expectations.
- Solar panel "paved" roadways are proving to be inefficient and too expensive.
During World War II, the U.S. incarcerated over 100,000 Japanese Americans in concentration camps throughout the West.
- Now that the issue of concentration camps in the U.S. has once again reared its head, it can be beneficial to recall the last time such camps were employed in the U.S.
- After Pearl Harbor, the U.S. incarcerated over 100,000 Japanese Americans in camps, ostensibly for national security purposes.
- In truth, the incarceration was primarily motivated by racism. What was life like in the U.S.'s concentration camps?
On February 19, 1942, President Roosevelt issued Executive Order 9066, which authorized and directed military commanders "to prescribe military areas … from which any or all persons may be excluded, and with respect to which, the right of any person to enter, remain in, or leave shall be subject to whatever restrictions the Secretary of War or the appropriate Military Commander may impose in his discretion." Under the authority of this executive order, roughly 112,000 men, women, and children of Japanese descent — nearly two-thirds of which were American citizens — were detained in concentration camps.
How did the camps get their start?
With the benefit of a nearly 80-year perspective, it's clear that the internment of Japanese Americans was racially motivated. In response to Japan's growing military power in the buildup to World War II, President Roosevelt commissioned two reports to determine whether it would be necessary to intern Japanese Americans should conflict break out between Japan and the U.S. Neither's conclusions supported the plan, with one even going so far as to "certify a remarkable, even extraordinary degree of loyalty among this generally suspect ethnic group." But of course, the Pearl Harbor attacks proved to be far more persuasive than these reports.
Pearl Harbor turned simmering resentment against the Japanese to a full boil, putting pressure on the Roosevelt administration to intern Japanese Americans. Lieutenant General John DeWitt, who would become the administrator of the internment program, testified to Congress
"I don't want any of them here. They are a dangerous element. There is no way to determine their loyalty... It makes no difference whether he is an American citizen, he is still a Japanese. American citizenship does not necessarily determine loyalty... But we must worry about the Japanese all the time until he is wiped off the map."
DeWitt's position was backed up by a number of pre-existing anti-immigrant groups based out of the West Coast, such as the Joint Immigration Committee and the Native Sons and Daughters of the Golden West. For many, the war simply served as an excuse to get rid of Japanese Americans. In an interview with the Saturday Evening Post, Austin Anson, the managing secretary of the Salinas Vegetable Grower-Shipper Administration, said:
"We're charged with wanting to get rid of the Japs for selfish reasons. We do. It's a question of whether the White man lives on the Pacific Coast or the brown men. ... If all the Japs were removed tomorrow, we'd never miss them in two weeks because the White farmers can take over and produce everything the Jap grows. And we do not want them back when the war ends, either."
Ironically for Anson, the mass deportation of Japanese Americans under Executive Order 9066 meant there was a significant shortage of agricultural labor. Many Caucasians left to fight the war, so the U.S. signed an agreement with Mexico to permit the immigration of several million Mexicans agricultural workers under the so-called bracero program.
Life in the camps
Hulton Archive/Getty Images
Circa 1943: Aerial view of a Japanese American relocation center in Amache, Colorado, during World War II. Each family was provided with a space 20 by 25 ft. The barracks were set in blocks and each block was provided with a community bath house and mess hall.
For the most part, Japanese Americans remained stoic in the face of their incarceration. The phrase shikata ga nai was frequently invoked — the phrase roughly translates to "it cannot be helped," which, for many, represents the perceived attitude of the Japanese people to withstand suffering that's out of their control.
Initially, most Japanese Americans were sent to temporary assembly centers, typically located at fairgrounds or racetracks. These were hastily constructed barracks, where prisoners were often packed into tight quarters and made to use toilets that were little more than pits in the ground. From here, they were relocated to more permanent camps — replete with barbed wire and armed guards — in remote, isolated places across the seven states of California, Arizona, Colorado, Wyoming, Idaho, Utah, and Arkansas.
Many of these camps, also known as War Relocation Centers, were little better than the temporary assembly centers. One report described the buildings as "tar paper-covered barracks of simple frame construction without plumbing or cooking facilities of any kind." Again, overcrowding was common.
As a result, disease became a major concern, including dysentery, malaria, and tuberculosis. This was problematic due to the chronic shortage of medical professionals and supplies, an issue that was not helped by the War Relocation Authority's decision to cap Japanese American medical professional's pay at $20 a month (about $315 in 2019 dollars), while Caucasian workers had no such restriction. As a comparison, Caucasian nurses earned $150 ($2,361) a month in one camp.
The U.S. government also administered loyalty questionnaires to incarcerated Japanese Americans with the ultimate goal of seeing whether they could be used as soldiers and to segregate "loyal" citizens from "disloyal" ones. The questionnaires often asked whether they would be willing to join the military and if they would completely renounce their loyalty to Japan. Due to fears of being drafted, general confusion, and justified anger at the U.S. government, thousands of Japanese Americans "failed" the loyalty questionnaire and were sent to the concentration camp at Tule Lake. When Roosevelt later signed a bill that would permit Japanese Americans to renounce their citizenship, 98 percent of the 5,589 who did were located at Tule Lake. Some apologists cite this an example of genuine disloyalty towards the U.S., but this argument clearly ignores the gross violation of Japanese Americans' rights. Later, it became clear that many of these renunciations had been made under duress, and nearly all of those who had renounced their citizenship sought to gain it back.
Since many children lived in the camps, they came equipped with schools. Of course, these schools weren't ideal — student-teacher ratios reached as high as 48:1, and supplies were limited. The irony of learning about American history and ideals was not lost on the students, one of whom wrote in an essay --
"They, the first generation [of Japanese immigrants], without the least knowledge of the English language nor the new surroundings, came to this land with the American pioneering spirit of resettling. ...Though undergoing many hardships, they did reach their goal only to be resettled by the order of evacuation under the emergency for our protection and public security."
Potentially the best part of life in the camps — and the best way for determined prisoners to demonstrate their fundamental American-ness — was playing baseball. One camp even featured nearly 100 baseball teams. Former prisoner Herb Kurima recalled the importance of baseball in their lives in an interview with Christian Science Monitor. "I wanted our fathers, who worked so hard, to have a chance to see a ball game," he said. "Over half the camp used to come out to watch. It was the only enjoyment in the camps."
When the camps finally closed in 1945, the lives of the incarcerated Japanese Americans had been totally upended. Some were repatriated to Japan, while others settled in whichever part of the country they had been arbitrarily placed in. Those who wished to return to the West Coast were given $25 and a train ticket, but few had anything to return to. Many had sold their property to predatory buyers prior to being incarcerated, while theft had wiped out whatever else they had left behind. Many, many years later, the 1988 Civil Liberties Act mandated that each surviving victim be paid $20,000, though that seems like a small fine to pay for irrevocably changing the courses of more than 100,000 lives.