A NEW DEAL for Students

Policies written by students & for students on how to solve the student debt crisis in the United States
A joint collaboration between students in the Roosevelt Institute | Campus Network and the United States Students Association

A joint collaboration between students in the Roosevelt Institute | Campus Network and the United States Students Association

A New Deal for Students

Young people across the country face increasingly insurmountable obstacles to their future economic success. The youth unemployment rate is 12.5 percent, significantly higher than that of other groups of Americans and almost double the national average. On top of bleak job prospects, young Americans who invest in higher education in pursuit of a better future are witnessing diminishing returns and growing long-term burdens from student debt. To date, student debt in the United States is over $1 trillion dollars, surpassing the total amount of credit card debt. Students from the Roosevelt Institute | Campus Network (RICN) and the United States Students Association (USSA) are taking up the urgent challenge that our political leaders are failing to address. Through individual research and initiative, they have drafted a set of concrete and innovative recommendations to ameliorate the growing problem of student debt and provide relief to the heavy economic burden that limits the potential of Americas future entrepreneurs, nurses, lawyers, small business owners, and workers. In this report, students outline their arguments for a better system of paying for higher education. Policy recommendations range from tax incentives for students committed to staying in their home states to raising the federal minimum range to supporting new graduates who teach in rural areas. What we want is critical debate and, above all else, action by our lawmakers on this critical financial issue affecting millions of young Americans.

Lets make change together,

The United States Student Association & ! ! The Roosevelt Institute Campus | Network

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About the United States Student Association The United States Student Association, the countrys oldest, largest, and most inclusive national student-led organization, develops current and future leaders and amplifies the student voice at the local, state, and national levels by mobilizing grassroots power to win concrete victories on student issues. The United States Student Association Foundation ensures the pipeline of effective student leadership by facilitating education, training and other development opportunities at national, state, and local levels in advocating for issues that affect students. USSA believes that education is a right and should be accessible for any student regardless of their socio-economic background and identity. We believe people who are affected directly by issues of access to higher education should be the ones identifying the solutions that make education accessible to them. Therefore, USSA is dedicated to training, organizing, and developing a base of student leaders who are utilizing those skills to engage in expanding access to higher education and advancing the broader movement for social justice. www.usstudents.org About the Roosevelt Institute | Campus Network Founded in the wake of the 2004 election, the Roosevelt Institute Campus Network was formed in order to strengthen the progressive movement by meaningfully engaging young people in politics. The Campus Network emphasizes that young people can take action on their ideas and create an impact in their communities. It encourages them to advocate for the progressive policies that they have written. It gives them an opportunity to reshape their communities. It allows them to experience, first-hand, the power of progressive thought in creating positive change. And the Network empowers students to see themselves as progressive leaders in their own right. The Roosevelt Institute | Campus Network, a national student initiative, engages young people in a unique form of progressive activism that empowers them as leaders and promotes their ideas for change. Through communication and coordination with political actors and community members, students identify pressing issues facing their towns, counties and states. Taking advantage of the unique resources on their college campuses, they engage in policy research and writing and then connect the fruits of that research to the political process, delivering sound, progressive proposals to policymakers and advocacy groups. www.rooseveltcampusnetwork.org

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policy recommendations for students written by students

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Make Income-Based Repayment the Default Options, p. 6 By Razmig Sarkissian, UCLA Forgive Student Loan Debt for Students Who Work in Their Home States, p. 7 By Sonja Karnovsky and Adam Watkins, the University of Michigan-Ann Arbor Implement Private-Public Partnerships for Work-Study, p. 8 By Lawrence Svabek, Katherine Strair, Samuel Wylde, Northwestern University Support Rural Education by Relieving Student Loans for Teachers, p. 11 By Meredith Morrison, Hendrix College Discharge Private Student Loan Debt Under Bankruptcy Law, p. 13 By Maxwell Love, University of Wisconsin-Madison Cap the Federal Stafford Loan Interest Rate at 3.4 Percent, p. 14 By Lana El-Farra, UCLA Mandate Federal Pell Grant Funding, p. 15 By Nadim Houssain, University of California-Santa Barbara Raise the Federal Minimum Wage, p. 16 By Kevin Huang, University of California-Santa Cruz ! ! EDITORS Lydia Austin Senior Fellow for Economic Development Roosevelt Institute | Campus Network Joelle Gamble Deputy Field Director Roosevelt Institute | Campus Network Kalwis Lo Legislative Director United States Student Association Special thanks to: Roosevelt Institute | Campus Network Staff USSA Board and Staff 5!

Table of Contents:

Recommendation #1 Make Income-Based Repayment the Default Option Razmig Sarkissian, UCLA

Congress should make income-based repayment the default option for paying back student loan debt.
History Income-Based Repayment (IBR) is not a new concept. It was first enacted as part of the College Cost Reduction and Access Act of 2007. IBR sets a borrowers monthly payment on his federal student loans as a percentage of his current income upon approval.i A borrower is eligible for IBR if what he would pay monthly under the standard 10-year repayment plan is higher than 15 percent of his adjusted gross income, after deducting 150 percent of the poverty guidelines.ii The government will pay interest on the loans for up to three years if the monthly payment amount is less than what is being charged in interest. After three years, the interest will be added to the borrower's principal and used when calculating future interest, which will ultimately have to be paid if the borrower no longer qualifies for the Income-Based Repayment Plan program.iii After 25 years, the federal government then forgives any unpaid interest or principal on the loan.iv Borrowers who have completed 10 cumulative years of fulltime employment in a public service occupation will have the remaining loan interest and principal forgiven.v While borrowers with federal student loans of all types are eligible for IBR repayment and loan forgiveness, public service loan forgiveness is available only to borrowers with Direct Loans.vi Currently, more than half of student loans are being deferred, meaning the loan payment has been temporarily delayed. Deferred loans now represent 43.5 percent of all student loan balances.vii The balances on these deferred loans have grown from $228 billion in 2007 to $388 billion in 2012, an increase of 70 percent.viii The average student loan debt per borrower grew 30 percent to $23,829 during those years.ix Between 2007 and 2012, federal loan balances jumped 97 percent and federal student loan delinquencies rose 27 percent.x Despite these staggering numbers, only 1.1 million borrowers had enrolled in income-based repayment as of 2012.xi Analysis: Many borrowers are either unaware that the IBR program exists or are deterred by a complicated application process. In a June 2012, President Obama acknowledged this problem, Too few borrowers are aware of the options available to them to help manage their student loan debt, including reducing their monthly payment through IBR," Obama wrote. Additionally, too many borrowers have had difficulties navigating and completing the IBR application process once they have started it.xii Making IBR the default repayment option for federal loans would maximize the benefits of the program, provide a way to pay off debt in a way that will not cripple an individual's quality of life, and serve as a safety net for struggling borrowers. More people will be likely to begin making payments on their debt rather than deferring it for fear of high payments. IBR ! 6!

provides borrowers with low incomes an option to reduce monthly payments or postpone them indefinitely if their incomes remain sufficiently low.xiii For borrowers who experience short periods of unemployment or some other extenuating circumstances, IBR can help them avoid becoming delinquent or default.xiv Next Steps: Representative Tom Petri, a Wisconsin Republican and longtime supporter of income-basedrepayment plans, is drafting legislation to create a program that would turn IBR into a default option.xv This option should be included in relevant legislation related to student loan debt and education affordability. Recommendation #2 Forgive Student Loan Debt for Students Who Work in Their Home States Sonja Karnovsky and Adam Watkins, University of Michigan-Ann Arbor

With record student debt and a high proportion of college graduates leaving some states due to the weak economy, Congress should implement a program that forgives student debt in return for residing and working in the state in which a student graduates.
History A recent report found that 8.8 percent of students defaulted on their federal loan repayments in 2011, which is just below the 9.14 percent default rate for credit cards. Another shocking statistic from the report revealed that the accumulated debt on student loans totals to about $875 billion. According to the Department of Education, the average of the median debt level for universities in the United States was $11,141. The high level of student debt for many students, coupled with a recession that damaged some state economies more than others, has led to a drain of human capital from the hardest hit parts of the country. Michigan, for example loses half its students after graduation, making its poor graduate migration rate the 8th worst in the country. The migration rate significantly impacts states that have suffered economic crisis, such as Louisiana after Hurricane Katrina and the rustbelt as a result of the recession. This loss in college graduates hinders economic recoveries in these states as businesses search for talented human capital elsewhere. Motivation behind migration is undoubtedly linked to job prospects and the level of debt, making it difficult for those states to speed up their economic recoveries. Analysis While student debt and the brain drain are separate issues, they can be addressed together in a way that will improve both situations. The United States should implement a law stipulating that any student graduating with a degree in business, math, or science from a public university and who remains in the same state where they attended school will have a portion of their monthly student loan payments absorbed by the state. This policy is similar to the Opportunity Maine program, which allows graduates to qualify for a tax credit for student debt if they remain in Maine after graduation. Maines program is expected to be turning a profit of $30 million per year for the state after ten years due to increased tax revenues from a larger population and business growth. If a similar program is implemented nationally, every ! 7!

state would see a similar or greater return on investment. For example, the average starting salary of an engineer is about $60,000. If you calculate a 4.35 percent income tax in the state of Michigan over 10 years, the revenue from income taxes alone would pay back the cost of the forgiven debt. The United States should implement a program to forgive a portion of those students debt who do not move after graduation. Stakeholders A debt forgiveness program will have a positive effect on both college graduates and the nations economy. This program will alleviate some of the financial burden students face after attending college and it will encourage students to live and work in state. Currently there is a high rate of immigration to certain areas of the country primarily both coasts at the expense of the rest of the country. A program that incentives students to stay in the state where they attended a public university will help correct for this imbalance. Degrees would be restricted to business, math, or science in order to attract careers that are more in-demand and focused on pushing the nations economy into the future. Businesses and industries will be attracted to the higher concentration of students qualified for high tech jobs. In addition, the state government will benefit financially in the long run, making the program economically viable and essential for states. Next Steps The economic climate around the country has left the United States with severe student debt and brain drain problems. The national government can play a significant role in solving these problems. A debt forgiveness policy for students who stay in their state after graduation solves both issues and it will make money for the government in the long run. The benefits to the United States are irrefutable. Congress should implement this policy to give students and the economy a brighter future. Recommendation #3 Implementing Private-Public Partnerships for Work-Study Lawrence Svabek, Katherine Strair, Samuel Wylde, Northwestern University

Strengthen the private-sector employment program within Federal Work-Study to expand the number of student receiving financial aid in the form of work study and simultaneously prepare students with the necessary skills to enter the workforce upon graduation.
History: With even the employed finding it difficult to pay off loan debt that averages over $26,000 per household, the weak job market further threatens the ability of current students and graduates to afford their educations.1 It is crucial that students graduate college with both less debt and greater job prospects. Otherwise, incentives to attain a higher level of education for low-income students could quickly diminish. The Federal Work-Study (FWS) Program has seen few changes since its inception in 1964. Reaching over 3400 postgraduate institutions today, FWS was created with the intention of ! 8!

helping lower-income students attend college by promoting part-time employment in the public interest or related to a students educational objectives.2 While community service has become an important part of the program through the government increasing the subsidization of service jobs, there has not been significant support for private sector employment. Recognizing that students with industry experience are more likely to be successful in their future careers, Bradley University in Peoria, IL implemented a partnership with Caterpillar to provide undergraduates with internships, scholarships, and research opportunities.3 The partnership has been mutually beneficial, providing students with valuable educational opportunities and Caterpillar with young talent. Analysis: The Federal Work-Study Program should be reformed so that it is more conducive to creating for-profit work-study opportunities. Currently, universities are only allowed to use federal work-study funds to pay for 25 percent of the wages of students in for-profit work-study jobs.5 By enabling institutions of higher education to use federal money for 35% of the wage, workstudy partnerships will be more attractive to for-profit firms. In order to not detract from opportunities to work at the university or in community service, we also argue for an expansion of total FWS. This expansion would enable institutions to grant more students work-study financial aid and offset the chance that deserving students lose necessary assistance. President Obamas proposed increase in federal work-study funding in the FY 2013 budget is consistent with this expansion6. By increasing the number of for-profit work-study jobs, our program will increase the total number of students who can receive work-study because for-profit dollars will pay for part of a students wage. Our program would also help to bolster the number of students who can find an actual career after college. A recent study found that only 22% of students have a career directly after graduation7. More for-profit workstudy opportunities would help to give undergraduate students pre-professional development so that students have a stronger understanding and commitment to their field of study after college. Stakeholders: Other than the federal government and educational institutions, the stakeholders who have the most to gain by this proposal are private sector parties and undergraduate students. For the private sector, an expanded work-study program offers subsidized labor and the opportunity to direct the development of students professional skills, providing these organizations with experienced applicants upon graduation. Additionally, an expanded program would afford more students the opportunity to gain pre-professional experience, make strong connections to potential employers, and finance their education in one fell swoop. Next Steps: Expanding the FWS as we have proposed will take a concerted effort on the part of ! 9!

Congress, institutions receiving FWS funds, and the private sector parties that stand to benefit from more student workers. First, Congress must increase both the total funds allotted to FWS and the proportion of those dollars that may be used to subsidize student employment in the private sectorfrom 25 percent currently to closer to 35 percent. Ultimately, the increased proportion must be an amount sufficient to make expanding private sector student employment financially attractive to affected institutions. Successful expansion also depends on eligible colleges and universities forging or strengthening partnerships with local private sector organizations, specifically those able to provide students with experience in their desired professional fields. Ideally, this will be a coordinated effort between the school and businesses to create programs that are mutually beneficial. Finally, private sectors employers must be open enough to recognize the long-term advantages of being part of students professional training.

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SPOTLIGHT: A LOCALLY-BASED POLICY SOLUTION

Recommendation #4 Support Rural Education by Relieving Student Loans for Teachers Meredith Morrison, Hendrix College

To increase the number of qualified teachers and honors-level courses in rural schools, states should implement a loan repayment program that provides tax credits or loan reimbursements for qualified, honors-level teachers who teach in rural schools. History Public high schools, specifically those in rural communities like schools in Missouri, face an urban-rural achievement gap.1 Many rural schools lack an adequate selection of honors-level courses, such as AP and college-credit classes. In Missouri, 67% of school districts are rural. 3 These rural schools offer fewer honors-level courses and have fewer teachers qualified to teach them, in part because most schools require teachers who teach honors-level courses to have a Masters degree. 4 The pool of accredited teachers is just small. National statistics tell us that only one-third of teachers in rural school districts have graduate degrees - compared to half of teachers in urban schools. 5 The problem is getting worse: better-educated teachers are often less attracted to teaching in a rural school district because of: geographic isolation, lower salaries and additional classes and extracurricular activities. 6 Analysis: Honors-level courses provide many educational benefits for students. A study of New York and Florida schools found that taking college-credit classes increased a students likelihood of graduating from high school, enrolling full-time in a four-year college, and completing college on time. Also, students who take college credit classes often have higher college GPAs than their peers.7 Learning from teachers with graduate-level and specialized degrees also provides educational benefits. For example, students whose teachers are certified and hold graduate degrees in math and science have higher test scores in those areas.8 These academic benefits suggest that Missouri should implement more honors-level courses taught by qualified teachers throughout the state. However, because rural schools have the strongest need for these courses and teachers, a program to attract and reward qualified, honors-level teachers should focus first on rural schools.

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Audience / Stakeholders: Forty-three percent of Missouris students reside in rural areas and small towns.9These students would directly benefit from a program designed to attract highly qualified teachers and honor -courses to rural schools. Additionally, graduate students who teach in rural Missouri would benefit from the loan repayment programs tax credits or reimbursements. Finally, the state legislature, the Missouri Department of Elementary and Secondary Education, and local school boards would be the government bodies responsible for creating, funding, and administering the loan repayment program. Next Steps: States should implement a teacher loan repayment program to attract highly qualified teachers to teach honors-level courses in rural public schools. First, only highly qualified teachers who have at least a Masters degree and all of their state certifications would be eligible for such a program. Second, the loan repayment program would provide a tax credit or reimbursement to these teachers for each year they teach an honors-level course in a rural school. Such a program could be similar to the Opportunity Maine Program, which provides a tax credit to graduates of Maine colleges who accept jobs in Maine. This tax credit helps cover the cost of student loan payments. The Opportunity Maine Program expects a financial net benefit of $30 million per year, as it encourages more college graduates to remain in the state. 10

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Recommendation #5 Discharge Private Student Loan Debt Under Bankruptcy Law Maxwell Love, University of Wisconsin-Madison

We must update bankruptcy law to allow student debt to be discharged in the same manner as other debt.
History Prior to 1976, student loans were dischargeable in bankruptcy without any exemptions.1 A regulation precluded discharge during the first five years of repayment if the government or a non-profit college or university made the loans. In 2005, for-profit companies persuaded Congress to extend the rules that prevented federal loans from being discharged to private loans.1 Now most judges will apply the Brunner test to student loan debt during bankruptcy and they will only be discharged under extreme hardship.1 The Brunner test is three pronged: 1. The debtor cannot maintain a minimal standard of living if forced to repay the loans 2. Additional circumstances must indicate that this state of affairs is likely to persist for a significant portion of the repayment period 3. The debtor has made good faith efforts to repay the loans According to Shedding Student Loans in Bankruptcy, the number of people who successfully discharge their debt per year is appears to be less than 1,000 people. However, of more than 3.6 million borrowers who entered repayment from Oct. 1, 2008 to Sept. 30, 2009, more than 320,000 had fallen behind in their payments by 360 days or more by the end of September 2010.1 Analysis The reasoning is clearit is all about fairness. When one files for bankruptcy under either Chapter 7 or Chapter 13, an individual either makes no effort to repay his debt or will make some attempt to repay his debt under an approved plan, respectively.1 Not to mention that other kinds of debt can be discharged under bankruptcy. These include credit card debt, medical debt, rent and utility debt, as well as foreclosure debt.1 We must extend the same sort of bankruptcy protection to people with student loan debt. The bankruptcy process already includes a strict requirement for full disclosure of all assets that can be liquidated to pay as much as possible to creditors. Thus, it does not make much sense for someone to have to continue to pay back beyond this, as someone who is bankrupt has already been squeezed for all he is worth. There is also an economic justification. A simple change in bankruptcy law would result in a conversation about the problem of predatory educational lending. It makes sense that judges should grant the discharge of educational debt to college graduates who are forced to turn to bankruptcy because the worth of their degrees is arguably lower than those who have been able to land good jobs. ! 13!

Recommendation #6 Cap the Federal Stafford Loan Rate at 3.4 Percent By Lana El-Farra, UCLA

Federal Stafford Loan interest rates should be capped at 3.4 percent annually. This will have significant net benefits for college affordability and the economic stability of the workforce.
History Federal Stafford Loans are available for undergraduate and graduate students attending college either full time or part time. Currently, the interest rate on Federal Stafford Loans is 3.4 percent. In 2012, U.S. Congress threatened to double this interest rate. Due to increased student mobilization, the interest rates stayed the same for one more year. However, the rate could still return to 6.8 percent this year. Last year, student loan debt reached over $1 trillion. Today, about two-thirds of college students graduate with an average of $26,500 in debt. Paying for a college education is slowly becoming more of a private responsibility. And with state funding of higher education slowly declining and tuition slowly rising financial aid has become primarily a loan package, designed to help in the short term only. Loan packages have greatly increased over the years: in 1980, only 39 percent of federal financial aid was in the form of loans, but that has risen to 64 percent by 2008. Furthermore, the Pell Grant today only covers about a third of the costs of attending a four-year university. Analysis With tuition rates increasing substantially across the nation, students are having to not only take on multiple jobs, but are also taking out an increased number of federal and private loans. Students who graduate are then crippled by the expenses they have to pay almost immediately after graduation due to the loans taken out during their time in college. With youth unemployment so high, it is impossible to assume that students who graduate will be able to continuously pay back their student loans. The federal government borrows the money to pay for loans at a 1 percent interest rate. To double the current interest rates and lend federal loans out to students at a 6.8 percent interest rate would clearly be only a short term profit raising decision with long term negative consequences. The government should not be making a profit off of student loans. Keeping the interest rate at 3.4 percent makes the most logical sense. The combination of youth unemployment and the lack of high salary jobs for recent graduates would only be compounded by higher interest rates. Stakeholders The United States and global economics are effectively impacted by whether or not students can afford to pay back their student loans. By saddling new-graduates with debt that they cannot pay off for most of their lifetimes, policymakers are repressing future consumer demand and worker productivity. With lower interest rates, graduates will have the economic flexibility to take risks and find a job that suits their expertise. 14!

Recommendation #7 Mandate Pell Grant Funding in the Federal Budget Nadim Houssain, University of California, Santa Barbara

Guarantee a minimum amount of federal funding for Pell Grant awards in the federal budget.
History Due to rising costs of public higher education, students are incurring unprecedented levels of debt through student loans in order to graduate with a degree. Last year, student loan debt reached $1 trillion, surpassing credit card debt to become the largest type of debt in the nation. Student loan debt is also unforgivable in bankruptcy, which, combined with the high interest rates that accompany private loans and limited job opportunities, means that many recent graduates are finding themselves burdened with growing levels of debt and little opportunity to pay it off. It is therefore paramount that the Pell Grant program - the primary source of federal aid that does not have to be repaid be guaranteed a minimum annual level of funding to ensure that low-income and middle-class students are no longer discouraged from pursuing a higher education from fear of facing exorbitant amounts of student debt. Analysis Although the Pell Grant program, established in 1978 as part of the Middle Income Student Assistance Act of 1978, has experienced increased funding throughout the past several years, reaching $41,674,180,000 in the 2011 Fiscal Year, it is imperative that the federal government further augment it in order to keep up with the rising cost of public higher education and prevent growing levels of student debt. [1] With the current maximum Pell Grant award at $5,550 per year, and with nearly three-quarters of student borrowers graduating with an average of $25,000 in student loan debt, Pell Grants do not sufficiently address looming student loan debt for the majority of student borrowers even if they receive the maximum award available. [2] Beyond a continuation of funding for Pell Grants, a mandatory floor for funding should be implemented in the federal budget. Over the past several years, Pell Grants have been vulnerable to an unpredictable and caustic Congressional budgetary process, which injects an unacceptable level of uncertainty into students and families lives who are trying to plan for college. These grants are a critical service to our nations students that merits their classification as mandatory spending. Further, a cost of living increase for Pell Grants is vital for students financing their education. As documented above, the costs of education are increasing rapidly, and Pell Grants can and should keep pace, guaranteeing they are fulfilling the basic goal of providing access to all.

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Recommendation #8 Raise the Federal Minimum Wage By Kevin Huang, University of California at Santa Cruz

Raising the federal minimum wage, tipped minimum wage, and tying future increases to inflation will positively benefit the working poor and impoverished while simultaneously stimulating the economy, increasing demand to boost small businesses, and creating new jobs.
History The federal minimum wage was established pursuant to the Fair Labor Standards Act of 1938 at $0.25 per hour. Since 1938, the minimum wage has been increased consistently to retain the purchasing power of workers and to keep up with the costs of inflation. The longest period of time in which the minimum wage was left frozen and stagnant was 1981 to 1990. The minimum wage serves as a floor to protect workers from unsustainable wages that do not meet the cost of living while also increasing demand in the economy. Analysis The federal minimum wage has not been increased in four years, with the most recent increase coming as the last in three incremental raises starting in 2007. The minimum wage has lost its value over that period of time. The increasing cost of living and the increase in workers productivity is not accurately reflected in the current minimum wage. Income inequality continues to grow rapidly in the United States, while increased corporate profits have not resulted in increased wages. Raising the minimum wage does not increase unemployment, as some economists argue. Instead, it stimulates the economy by increasing consumer demand and worker purchasing power. Increasing the minimum wage to $10.10 would also increase the GDP by $33 billion, giving workers more money to spend and resulting in nearly 300,000 new jobs. Stakeholders: Today, 46.2 million people live in poverty in the United States, more impoverished than there has ever been in history. A recent study shows that in states that have increased the tipped minimum wage has increased, the poverty rate is 43 percent lower than those states that follow the federal rate of $2.13. Low-wage workers who would benefit from an increase in the minimum wage are more likely to work full time (55 percent), be a woman (56 percent), and be 20 years old or older (88 percent). Studies have shown that by increasing the minimum wage, teenagers and students are more likely to stay in school by being protected from low-wage, substandard jobs. This is an increase needed especially for those who have suffered from the recession.

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For!additional!information,!contact:! Joelle!Gamble,!Roosevelt!Institute!|!Campus!Network! jgamble@rooseveltinstitute.org! ! Kalwis!Lo,!United!States!Student!Association! leg@usstudents.org!

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REFERENCES: Recommendation 1: Make income -based repayment the default option!

1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 1. New America Foundation, October 2012. ttp://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf 1 Ibid. 1 "Exploring the Advantages and Disadvantages of the Income Based Repayment Program," Top Colleges, accessed March 3, 2013. http://www.top-colleges.com/blog/2010/02/03/exploring-the-advantages-and-disadvantages-of-the-income-based-repayment-program/ 1 Ibid. 1 Ibid. 1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 2. New America Foundation, October 2012. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Bill Hardekopf, "More Than Half of Student Loans Are Now In Deferral Or Delinquent," Forbes, February 1, 2013, accessed March 5, 2013, http://www.forbes.com/sites/moneybuilder/2013/02/01/alarming-number-of-student-loans-are-delinquent/ 1 Ibid. 1 Ibid. 1 Ibid. 1 Libby Nelson, "An Underused Lifeline," Inside Higher Ed, October 23, 2012, accessed March 5, 2013, http://www.insidehighered.com/news/2012/10/23/despite-student-debt-concern-income-based-repayment-lags#ixzz2MiU4RmDR 1 "Presidential Memorandum--Improving Repayment Options for Federal Student Loan Borrowers," White House, accessed March 3, 2013, http://www.whitehouse.gov/the-press-office/2012/06/07/presidential-memorandum-improving-repayment-options-federal-student-loan 1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 1. New America Foundation, October 2012. ttp://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf 1 Ibid. 1 Libby Nelson, "An Underused Lifeline," Inside Higher Ed, October 23, 2012, accessed March 5, 2013, http://www.insidehighered.com/news/2012/10/23/despite-student-debt-concern-income-based-repayment-lags#ixzz2MiU4RmDR

1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 1. New America Foundation, October 2012. ttp://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf 1 Ibid. 1 "Exploring the Advantages and Disadvantages of the Income Based Repayment Program," Top Colleges, accessed March 3, 2013. http://www.top-colleges.com/blog/2010/02/03/exploring-the-advantages-and-disadvantages-of-the-income-based-repayment-program/ 1 Ibid. 1 Ibid. 1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 2. New America Foundation, October 2012. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Ibid. 1 Bill Hardekopf, "More Than Half of Student Loans Are Now In Deferral Or Delinquent," Forbes, February 1, 2013, accessed March 5, 2013, http://www.forbes.com/sites/moneybuilder/2013/02/01/alarming-number-of-student-loans-are-delinquent/ 1 Ibid. 1 Ibid. 1 Ibid. 1 Libby Nelson, "An Underused Lifeline," Inside Higher Ed, October 23, 2012, accessed March 5, 2013, http://www.insidehighered.com/news/2012/10/23/despite-student-debt-concern-income-based-repayment-lags#ixzz2MiU4RmDR 1 "Presidential Memorandum--Improving Repayment Options for Federal Student Loan Borrowers," White House, accessed March 3, 2013, http://www.whitehouse.gov/the-press-office/2012/06/07/presidential-memorandum-improving-repayment-options-federal-student-loan 1 Jason Delisle and Alex Holt, "Safety Net or Windfall? Examining Changes to Income-Based Repayment for Federal Student Loans," pg 1. New America Foundation, October 2012. ttp://edmoney.newamerica.net/sites/newamerica.net/files/policydocs/NAF_Income_Based_Repayment.pdf 1 Ibid. 1 Libby Nelson, "An Underused Lifeline," Inside Higher Ed, October 23, 2012, accessed March 5, 2013, http://www.insidehighered.com/news/2012/10/23/despite-student-debt-concern-income-based-repayment-lags#ixzz2MiU4RmDR 1 Default Rates Rise for Student Federal Loans. U.S. Department of Education. September 12, 2011. Accessed January 23, 2012. http://www.ed.gov/news/press-releases/default-rates-rise-federal-student-loans.

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1 Norris, Floyd. Default Rates Easing, Except on Credit Cards New York Times. May 21, 2010. Accessed January 23, 2012. http://www.nytimes.com/2010/05/22/business/economy/22charts.html. 1 Dennis Cauchon. Student Loans Oustanding will Exceed $1 Trillion this Year. USA Today. October 25, 2011. Accessed January 23, 2012. http://www.usatoday.com/money/perfi/college/story/2011-10-19/student-loan-debt/50818676/1. 1 Jesse, David. How much does the average University of Michigan, Eastern Michigan University graduate owe in loans? AnnArbor.com. September 16, 2010. Accessed November 8, 2011. http://www.annarbor.com/news/university-of-michigan-graduates-owe-an-average-ofmore-than-20000-in-loans-government-says. 1 Silverman, Lauren. "The Brain Drain." Generation Y Michigan. November 5, 2009. Accessed November 13, 2011. http://generationymichigan.org/2009/11/05/the-brain-drain/. 1 NCHEMS Information Center. "Migration Rates by State, Age-Group, and Degree-Level." Accessed February 27, 2013. http://www.higheredinfo.org/dbrowser/index.php?submeasure=275&year=2007&level=nation&mode= graph&state=0. 1 Opportunity Maine Program. Opportunity Maine. Accessed November 19, 2011. http://www.opportunitymaine.org/opportunity-maineprogram/. 1 Graham, Emily. "Opportunity Maine aims to keep college grads in-state." The Bowdoin Orient. Accessed November 19, 2011. http://orient.bowdoin.edu/orient/article.php?date=2007-11-02ion=1&id=8. 1 Engineer Salary: Stats and Data. Accessed November 22, 2011. http://www.engineersalary.org/. 1 Income Tax Rate Change Information. Michigan Department of Treasury. Accessed November 22, 2011. http://www.michigan.gov/taxes/0,1607,7-238-43513_44135-177505--,00.html

[1] Fry, Richard. "A Record One-in-Five Households Now Owe Student Loan Debt." Pew Social Demographic Trends RSS. Pew Research Trends, 26 Sept. 2012. Web. 28 Nov. 2012. <http://www.pewsocialtrends.org/2012/09/26/a-record-one-in-five-households-now-owe-studentloan-debt/>. [2]"Campus Compact." A Brief History of the Federal WorkStudy Program Comments. Campus Compact, n.d. Web. 28 Nov. 2012. <http://www.compact.org/earn-learn-and-serve-getting-the-most-from-community-service-federal-work-study/a-brief-history-of-the-federalwork-study-program/>. [3] Metzinger, Karen C. "Engineering a Bold Future: Bradley and Caterpillar." Bradley University. Bradley University, 2013. Web. 25 Jan. 2013.

Recommend ation 3: Implement pr ivat e-pub lic part nership s for wor k- study !

[4]"Common Data Set, 2011-12 Financial Aid, University Enrollment." Northwestern University Common Data Set. Northwestern University, n.d. Web. 30 Nov. 2012. <http://enrollment.northwestern.edu/common-data/2011-12/h.html [5]Yang, Angela. "An Interview with the Director of Undergraduate Financial Aid at NU." Personal interview. 19 Nov. 2012. [6]Office of the Press Secretary. "FACT SHEET: President Obamas Blueprint for Keeping College Affordable and Within Reach for All Americans." The White House. N.p., n.d. Web. 25 Jan. 2013. <http://www.whitehouse.gov/the-press-office/2012/01/27/fact-sheet-presidentobama-s-blueprint-keeping-college-affordable-and-wi>. [7]Stone, Charley, MPP, Carl Von Horn, PhD, and Cliff Zukin, PhD. Chasing the American Dream: Recent College Graduates and the Great Recession. Publication. Rutgers University, May 2012. Web. 30 Nov. 2012. [8]US Department of Education, "Federal Work-Study (FWS) Program." Last modified 2011. Accessed December 1, 2012. http://www2.ed.gov/programs/fws/funding.html.

Recommend ation 4: Sup porting Rural E ducat ion B y Relieving St udent Loans for Teachers
1. Achievement Gap Elimination Report. Missouri Department of Higher Education. http://dhe.mo.gov/data/achievementgapreport.php (retrieved November 1, 2012) 2. Advanced Credit Program. UMSL. http://www.umsl.edu/continuinged/acp/ (retrieved October 14, 2012) 3. Hull, Jonathan Watts. Status of Rural Education in the South: A Survey of Key Indicators. Regional Resource. http://www.slcatlanta.org/Publications/Education/RuralEducation.pdf (retrieved January, 23, 2013) 4. Ibid.2. 5. New No Child Left Behind Flexibility: Highly Qualified Teachers. US Department of Education. http://www2.ed.gov/nclb/methods/teachers/hqtflexibility.html (retrieved January 20, 2013) 6. Rural Education. University of Michigan. http://sitemaker.umich.edu/butler.356/teachers (retrieved January 23, 2013) 7. Allen, Drew. Dual Enrollment: A Comprehensive Literature Review and Bibliography. CUNY. http://www.cuny.edu/academics/k-to12/databook/library/DE_LitReview_August2010.pdf (retrieved October 14, 2012) 8. Ibid.7. 9. Ibid.3. 10. Opportunity Maine Program. Opportunity Maine. http://www.opportunitymaine.org/opportunity-maine-program/ (retrieved November 3, 2012) 11. Ibid.3. 12. Dual Credit and Exam-Based Courses in U.S. Public High Schools: 2002-03. National Center for Education Statistics http://nces.ed.gov/pubsearch/pubsinforasp?pubid=2005009 (retrieved October 2, 2012) 13. Ibid.12. 14. Ray, Patrick. Cover Letter. Missouri Association of Rural Education. http://www.moare.com/vnews/display.v/SEC/The%20Value%20of%20Small%20Schools%20in%20Missouri (retrieved November 3, 2012)

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Recommendation 5: Discharge private student loan debt under bankruptcy law

1 Lieber, Ron. Last Change to Shed Student Loans. New York Times. August 31, 2013. http://www.nytimes.com/2012/09/01/business/shedding-student-loans-in-bankruptcy-is-an-uphill-battle.html?pagewanted=all&_r=0 2 Ibid 3 Brunner v. New York State Higher Education Services. US Court of Appeals, 2 n d Circuit. (1987) http://www.moranlaw.net/student_loan_brunner.htm 4 Ibid 5 Discharge in Bankruptcy. U.S. Federal Courts. [Accessed March 8, 2013] http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/DischargeInBankruptcy.aspx

Recommendation 6: Cap the Federal Stanford Loan Rate at 3.4 Percent

1. Konzcal, Mike. Should We Stop Referring to Student Loans as Financial Aid. Next New Deal. 2012. http://www.nextnewdeal.net/rortybomb/should-we-stop-referring-student-loans-financial-aid 2. Temple, Jack. REPORT: Beyond Student Debt-For-Diploma System. April 5, 2012. Demos. http://www.demos.org/publication/beyond-debt-diploma-system-10-ways-student-debt-blocking-economic-mobility-young-america 3. Institute for College Access and Success. Student Debt and the Class of 2011. October 2012. http://projectonstudentdebt.org/files/pub/classof2011.pdf 4. Institute for College Access and Success. Student Loan Default Rates Show Continued Borrower Success. September 2012. http://projectonstudentdebt.org/pub_view.php?idx=857

Recommendation 7: Guarantee minimum Pell Grant Funding

[1] "Funding Status -- Federal Pell Grant Program." Funding Status -- Federal Pell Grant Program. N.p., n.d. Web. 06 Mar. 2013. <http://www2.ed.gov/programs/fpg/funding.html>. [2] "How Much Student Loan Debt Is Too Much?" US News RSS. N.p., 30 Jan. 2013. Web. 06 Mar. 2013. <http://money.usnews.com/money/blogs/my-money/2013/01/30/how-much-student-loan-debt-is-too-much>.

Recommendation 8: Raise the federal minimum wage

1. Aaronson, Daniel, Sumit Agarwal and Eric French. The Spending and Debt Responses to Minimum Wage Increases. Federal Reserve Bank of Chicago, 2011 2. Autor, David H., Alan Manning and Christopher L Smith. The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment. National Bureau of Economic Research Paper Series. 2010 http://www.nber.org/papers/w16533.pdf?new_window=13. Card, David. Do Minimum Wages Reduce Employment? A Cast Study of California 1987-89. Industrial and Labor Relations Review 46 (1992): 38-54 http://davidcard.berkeley.edu/papers/minwage-unemp.pdf 4. Card, David and Alan B Krueger. Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. The American Economic Review 84 (1994) :772-793 http://davidcard.berkeley.edu/papers/min-wage-ff-nj.pdf 5. Hall, Doug and David Cooper. How raising the federal minimum wage would help working families and give the economy a boost. Economic Policy Institute. 2012 http://www.epi.org/publication/ib341-raising-federal-minimum-wage/ 6. Hall, Doug and David Cooper. Raising the federal minimum wage to $10.10 would give working families, and the overall economy, a muchneeded boost. Economic Policy Institute. 2013 http://www.epi.org/publication/bp357-federal-minimum-wage-increase/ 7. Katz, Lawrence F and Alan B Krueger. The Effect of the Minimum Wage on the Fast Food Industry. National Bureau of Economic Research Paper Series. 1992 http://www.nber.org/papers/w3997.pdf?new_window=1 8. National Low Income Housing Coalition. Hours At Minimum Wage Needed to Afford Rent. 2012 http://nlihc.org/sites/default/files/oor/2012-OOR-Min-Wage-Map.pdf 9. Sutch, Richard. The Unexpected Long-Run Impact of the Minimum Wage: An Educational Cascade. National Bureau of Economic Research Paper Series. 2010 http://www.nber.org/papers/w16355.pdf10. United States Department of Labor. History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 - 2009 http://www.dol.gov/whd/minwage/chart.htm!

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