Literature Review #3

 Visual:

 Katerina Nikalexi | VOX, CEPR Policy PortalConstantine Yannelis | The University of Chicago Booth School of Business

There are the two authors, Katerina Nikalexi and Constantine Yannelis


Citation:

Nikalexi, Katerina, et al. “How to Lower Student Loan Defaults: Simplify Enrollment in Income-Driven Repayment Plans.” Manhattan Institute for Policy Research, Manhattan Institute for Policy Research, 1 Dec. 2019. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=eric&AN=ED604377&site=ehost-live.


Summary: 

The authors are explaining how there are other options that students can take to reduce their college loans, but these options are not widely known or applied, like they are in other countries. There are many income-driven repayment plans that can help students reduce monthly payments. 


Authors:

One of the authors, Katerina Nikalexi, is currently getting her PhD at the London Business School, and has also had job experience working at the European Central Bank. This makes her very knowledgable n how to handle money, and specially debt. The other author, Constantine Yannelis, is an assistant professor of Finance at the University of Chicago, also making him knowledgable on money and how to handle it. 

        

        Key Terms: 

        - "income driven": in this context, this phrase means that the amount that borrowers would have to pay back is dependent on their incomes.

        - "low-cost policy change": this is referring to the changes that could be made, not costly, which can help borrowers have an easier time with repaying their loans.

        - "optimal student credit arrangements": this is the best strategy for how a student should pay back their loans, and means what their best option is. 


        Three Quotes:

        - "few [students] take advantage of a federal program that would make them more affordable" (Nikalexi&Yannelis 1).

        - "Despite the advantages of the IDR, fewer than 30% of all student borrowers were enrolled as of 2018" (Nikalexi&Yannelis 1). 

        - "The program is underutilized because the paper application process is unnecessarily complex" (Nikalexi&Yannelis 1). 


        Value

        This article gives value to my paper by showing me the other options for repaying student loans that I can analyze. It gives a good option for student to use to reduce debt, yet explains why many students do not utilize this tool and how it is a problem with the system of government. 

; 







Comments

Post a Comment

Popular posts from this blog

Scouting the Territory

 I stand the same on my topic idea, and believe that the price of college is an interesting topic which I can get a lot of information from. When googling information, the terms that got me the most information was "college tuition prices". This led me to a college cost calculator, graphs about the increase of tuition costs, and information about this increase in price. When looking for more information on this topic, a book that seems interesting is "The Price You Pay for College" by Ron Lieber, which seems to be assisting families in figuring out the financials involved with choosing a college. Another book that appears to be useful is "Tuition Rising: Why College Costs So Much" by Ronald Ehrenberg, that explains the increase in prices. After reading these articles, an issue that seems to be important is how difficult this is for families to manage, especially ones who are low-income or have many children that they need to assist in paying for college. 
Read more

Initial Topic Idea

Image
When discussing topics having to do with college, one that always comes up is the tuition. This is a topic that can be researched and observed very extensively, and it is something that affects all college students. The rising cost of education is something that impacts all of our lives, and this cost has been increasing at an alarming speed. This brings up many problems and questions for students that can be difficult to answer. Does this put some students at a disadvantage? Or is this decision to increase college tuition necessary for our society?  
Read more

Research Blog #9

 Argument & Counterargument The current price of college and the rate that it is rising is unreasonable for young adults to have to pay back, and there should be more programs to aid students in paying these back.  An opposing view is that  the price of college education is justifiable, since you are paying for a degree that you will most likely use for the rest of your life. Some also say that it is worth the price because “higher enrollment has brought an expansion of financial-aid programs, a need to increase budgets for faculty pay and on-campus student services, and a decline in financial support from state governments” (Hoffower 1). While this is true, the price of college is still rising at an alarming rate. Since it has risen at such a fast pace, most older adults do not understand the struggles that current-day college students go through. With tuition prices so high, millennials are currently facing unique struggles that previous generations did not deal with. Having co
Read more