Student Debt and the Value of a College Degree

Skyrocketing tuition and fees, increasing student debt, and a weak economy have led many to wonder whether the benets of going to college are worth the costs. More students than ever are taking on student loans -- a troubling trend that suggests that college is becoming less accessible to many students, even as our economy requires greater numbers of highly educated workers. In this report, the authors review the status of undergraduate student debt in California and consider it in light of the economic benets of attaining a college degree. This report finds that student debt has increased notably in recent years. In 2010, almost half of California freshmen took out a student loan -- ten years earlier, only one-third did so. Moreover, the size of those loans has increased. The average loan amount for freshmen in California increased 36 percent (adjusted for inflation) between 2005 and 2010, reaching almost $8,000 for that first year alone. Students at private colleges are much more likely than students at the state's public colleges to take out loans, and the amounts of those loans are substantially higher at private institutions. Of particular concern are students at private for-profit colleges. Almost all students attending those institutions take out loans, and the loan amounts are higher than at any other type of institution. Despite the increase in debt, college is a good investment for the vast majority of students. Labor market outcomes, including employment and wages, remain far better for college graduates than for less educated workers, and all but the lowest-paid college graduates earn sufficient wages to pay off average debts. However, certain students do not fare so well. Those who do not finish college have far lower earning potential than those who do. And a small share of students take out massive loans and have trouble paying them back. Default rates are particularly high for students who attend private for-profit colleges. By keeping tuition low in the past (and even now at community colleges) and, more recently, by expanding grant aid to those attending public institutions, California policymakers and higher education officials have ensured that student debt is lower in California than in the rest of the United States. Relatively high graduation rates coupled with strong labor market outcomes have kept default rates on student loans very low for attendees of the University of California and the California State University, and at almost all private nonprofit colleges. Efforts by policymakers to limit state aid to institutions with poor student outcomes, including high student loan default rates, should continue. Almost all of the poorly performing schools are private for-profit institutions.In an era with seemingly ever-increasing college tuition, the state should find additional ways to make college affordable for greater numbers of Californians. Improving pathways from community colleges, with their very low tuition, to four-year colleges should be a high priority. The new associate degree for transfer is a step in the right direction. Finding ways to help families save for college should be another state priority. One option would be to create a college savings program that guarantees full tuition at the state's public universities. Numerous states have adopted such programs, and hundreds of thousands of families are participating in them. Finally, to keep costs down, state policymakers and higher education officials need to ensure adequate funding of higher education institutions, as well as eciency in the delivery of higher education. Online offerings are one -- as yet unproven -- possibility for efficiency gains. Ultimately, the significance of a college education is larger than the gains enjoyed by any one person. California's future prosperity depends on public policies that promote college enrollment and completion for increasing numbers of Californians

Immigrants in California

A fact sheet that provides a brief overview of the state of immigrants in and immigration to California as of March, 2021, examining factors such as immigration status, education, language skills, and the overall rate of immigration to the state.

Book reviews [1976, Vol. 3, nos.1-4]

Books reviewed are: Arthur Lowes Dickinson, Accounting Practice and Procedure, Reviewed by Jack L. Krogstad; Institute of Chartered Accountants in England, Historical Accounting Literature, Reviewed by Adrian L. Kline; Arthur H. Woolf, A Short History of Accountants and Accountancy, Reviewed by Kenneth O. Elvik; Osamu Kojima, Historical Studies of Double Entry Bookkeeping, Reviewed by Richard H. Homburger; Wilmer L. Green, History and Survey of Accountancy, Reviewed by Horace R. Givens; Doris Langley Moore, Lord Byron Accounts Rendered, Reviewed by Hans Johnson; Arthur Andersen & Co., The First Sixty Years 1913-1973, Reviewed by S. J. Lambert; Haskins & Sells: Our First Seventy-Five Years, Reviewed by Joyce C. Lambert; Francis William Pixley, Auditors: Their Duties and Responsibilities Under the Joint-Stock Companies Acts and the Friendly Societies and Industrial and Provident Societies Acts, Reviewed by Bill D. Jarnagin

Illegal Immigration

Provides data on the number of illegal immigrants in the United States, countries of origin, areas of settlement, demographics, reasons for immigrating, economic role, and fiscal impact, as well as public attitudes and the immigration policy debate

California's Political Geography

Based on PPIC Statewide Survey data, outlines regional variations in party representation in the U.S. Congress and the state legislature, residents' party affiliation, and ideology on social and fiscal issues. Considers electoral implications

Defunding Higher Education: What Are the Effects on College Enrollment?

Examines the effects of the state's higher education spending cuts on enrollment rates of eligible, highly prepared students at the University of California, California State University, and California Community Colleges systems. Outlines implications

Educating California: Choices for the Future

Outlines the need to improve the K-12 and higher education systems to close the projected skills gap in the labor force. Recommends reducing high school dropout rates and increasing community college transfer rates and graduation rates at state colleges

The Central Valley at a Crossroads: Migration and Its Implications

Examines recent trends in domestic and international migration flows, population growth, and changes in the region's socioeconomic profile. Looks at policy strategies used by each valley subregion to address challenges presented by recent migration

Higher Education Earnings Premium: Value, Variation, and Trends

Overall, people with a college education do better in the labor market than people with no education beyond high school. Higher levels of education correspond, on average, to higher levels of employment and higher wages. Yet, as college prices rise and as examples of graduates struggling to find remunerative employment despite their credentials become more visible, both potential students and the general public are questioning the value of a college education. The data, however, remain clear: even at current prices, postsecondary education pays off for most people. Promising occupational and personal opportunities are disproportionately available to college graduates. It is increasingly difficult to maintain a middle class lifestyle without a postsecondary credential, and the economic, social, and civic benefits of a more educated population are well documented. Outcomes do vary considerably, however, both among people with similar levels of education and across types of credentials. Growing income inequality does not just involve a growing gap between the earnings of the most educated and the least educated people; there is also increasing variation within educational categories. Greater understanding of these patterns and of the changes over time in the earnings premium for different levels of education can add perspective to discussions of the importance of increased educational attainment for both individuals and society as a whole. This brief highlights some of the complexities underlying discussions of the return to the investment in postsecondary education and describes some of the variation in outcomes that leads to the prevalent uncertainty about the value of the investment, clarifying that disappointing outcomes for some are not inconsistent with a high average payoff and significant benefits for most student