“wicked hard” financial leveraging for middle income families rakin hall, m.ed university of...
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“Wicked Hard”Financial Leveraging for Middle Income Families
Rakin Hall, M.EdUniversity of Southern California
The Evolution of Degree AttainmentWhy be so smart?
Paper ChaseA brief history of wealth acquisition.• Conquering
• Land acquisition• Slavery
• Free labor• Industrial revolution
• Wealth creation• Information age
• Exchange of knowledge/technology
AltruismBuilding a university
Keepers of the gateCollege was never intended for mass consumption.• The three pillars of building a university
• Qualify/Quantify/Diversify• Scholarship money
• Qualify• Student Migration
• Quantify/Diversify
Paper ChaseA brief history of wealth acquisition.
• Conquering• Acquiring lands
• Slavery• Free labor
• Industrial revolution• Wealth creation
• Information age• Exchange of knowledge/technology
What’s the disconnect?Mean v. Standard Deviation
CSS Profile
Who does this benefitThe rich, the poor, the middle class, or the colleges?
• $25 to complete profile• Current year’s (2012) federal income tax return(s), if
completed• Prior year’s (2011) federal income tax return(s)• W-2 forms and other records of money earned in 2012• Records of untaxed income and benefits for 2011 and 2012• Current bank statements• Current mortgage information• Records of savings, stocks, bonds, trusts, and other
investments
Why Are We Here?What’s the cost?
• $902 billion and $1 trillion in total outstanding student loan debt in the United States. (Source: American Student Assistance)
• Nearly 20 million attend college each year. (Source: Chronicle of Higher Education) Americans
• Of that 20 million, close to 12 million – or 60% - borrow annually to help cover costs. (Source: Chronicle of Higher Education)
• There are approximately 37 million student loan borrowers with outstanding student loans today. (Source: Federal Reserve Board of New York)
Options?What Can Middle Income Families Do?
Tactics• Savings
• Generational v. Liquid Wealth• Home Equity
• Housing bubble burst• Loans/Parent Plus Loans
• Zombie debt• Income Based Repayment (IBR)
• 10% of income• Loan forgiveness