RESTRUCTURING STUDENT LOANS

What can we learn about student loan policies from other countries? Perspectives from , , Sweden and Germany

JUNE 13-14, 2016 IN WASHINGTON, D.C.

Research School of STUDENT SPEAKERS SPEAKERS RESTRUCTURING LOANS

It’s time to restructure Nicholas Barr, fellow of the Royal Society Board of the International Social Security of Arts, is professor of public economics Review and an Associate Editor of CESifo at the London School of Economics. Since Economic Studies, the Australian Economic student loans. the mid-1980s he has been active in the Review and the Journal of the Economics debate about financing higher education, of Ageing. advocating a system of income-contingent student loans collected alongside income Alongside teaching and research is wide- tax or social security contributions. In the ranging involvement in policy. He has UK, he argued for many years for tuition spent periods of leave at the World Bank, fees fully covered by income-contingent working on the post-communist transition loans, and he and his colleague Iain countries, and at the IMF. He is also Crawford have been described as the involved in pension policy and has advised Student-loan debt in the United States has mounted to architects of the 1998 and 2006 reforms in the governments of China and Chile on $1.2 trillion, now surpassing credit cards as the third- NICHOLAS BARR England. Barr led the team that designed pension reform, as well as governments in the student loan system in Hungary and the UK, Finland, Sweden and South Africa largest form of consumer debt. This growth has triggered London School of AGENDA has advised governments in Australia, (where he also contributed to the Lund a national conversation about the cost of college and Economics New Zealand and Chile. Committee on Child and Family Support). the appropriate level of student borrowing. With seven million student loans in default and rising tuition prices, June 13, 2016 He is the author of numerous articles and Barr has an MSc in economics from the many ask, “Is there a student-debt crisis?” At the heart author or editor of over twenty books, London School of Economics and a PhD of this question is a concern that borrowing is out of line 1:00 OPENING REMARKS including Financing Higher Education: from the University of California, Berkeley, Susan Dynarski, Education Policy Initiative Answers from the UK (with Iain Crawford), where he was a Fulbright Scholar. with the value of college. (2005). He is a member of the Editorial

Economists point to the high payoff to college to put 1:15 INTERNATIONAL PANEL student borrowing in perspective. On average, the payoff Nicholas Barr, London School of Economics to college far outweighs student debt. Most students can Christina Forsberg, CSN repay their loans without running into major problems. Bruce Chapman, Australian National University Lorraine Dearden is a professor of of early childhood adversity; ethnic But the number who do struggle is significant, and the economics and social statistics at inequality and discrimination; the struggles can come to dominate their financial lives. 2:15 COFFEE BREAK University College London and research determinants of the demand for different When student loans don’t work well, they create major fellow at the Institute for Fiscal Studies, types of schooling; intergenerational problems for borrowers and for the economy at large. where she has focused on college/higher income and education mobility; and 2:30 INTERNATIONAL PANEL education finance in the UK for the last program evaluation issues and methods. If many former students are carrying debt beyond their Achim Meyer Auf Der Heyde, DSW 15 years. Her research also covers other capacity to repay, we need to reconsider the parameters Lorraine Dearden, University College important issues such as widening access Dearden is part of the leadership team of of student borrowing, such as loan limits, loan London and Institute for Fiscal Studies to higher education, the effect of student the Administrative Data Research Centre forgiveness and repayment structures. aid on college participation and the – England, which is currently advocating returns to college education in both the and facilitating linkage of government 3:10 DOMESTIC REACTION UK and Australia. administrative data sets to enhance Today we have convened prominent international and MODERATOR: Kevin James, Jain Family Institute public policy making. This includes an domestic experts, profiled on the proceeding pages, to Mathew Chingos, Urban Institute LORRAINE Dearden conducts research on a range of innovative project analyzing student discuss options to improve US student loan policies. issues, including the impact of education loan data which has been linked to Rohit Chopra, US Department of Education DEARDEN and training on labor market outcomes government earnings and tax records. Jason Delisle, New America Foundation University College and company performance; evaluation Our goal is to enrich the US Susan Dynarski London and Institute of education and labor market policies; She is a fellow of the Academy of Social for Fiscal Studies conditional cash transfers for school Sciences and an IZA fellow. She has conversation around student loans 4:00 MODERATED Q&A students; the evaluation of childcare, studied at University College London, with perspectives on how other MODERATOR: Susan Dynarski home learning environment and early the London School of Economics and years policies on children’s and parents’ Australian National University. outcomes; the determinants and impact countries structure aid, borrowing 5:00 CLOSE and repayment.

-2- edpolicy.umich.edu/student-loans @edpolicyford #EPIstudentdebt -3- STUDENT SPEAKERS RESTRUCTURING LOANS Bruce Chapman is director, policy impact Chapman has published over 200 at the Australian National University’s papers on a range of issues, including Crawford School of Public Policy. Chapman income contingent loans, long-term Achim Meyer auf der Heyde is the for vocational training, professional received his bachelor degree (First Class unemployment, the meaning of job secretary general of the German schools and further education. As Honors) from the Australian National flows data, the economics of crime, the National Association for Student Affairs founder and director of the BBJ Company University and PhD from Yale University. economics of cricket, fertility, marital (Deutsches Studentenwerk / DSW), where (1985-1995), he consulted for national separation and government as risk he previously served as a member of its and federal state ministries, the He has consulted extensively on higher manager. Over the last several years he International Advisory Board. European Commission, local and regional education policy, including developing the has convened conferences and written authorities, trade unions and employer motivation and design of Australia’s Higher extensively on the application of income Achim Meyer auf der Heyde is also associations in the fields of professional Education Contribution Scheme (the first contingent loans to a host of social and president of the International Association education, labor market policy, social national income contingent loan scheme economic reform issues. of Student Affairs and Services, vice and youth policy and European financial using the income tax system for collection) president of the European Council for support. Between 1980 and April 1985 BRUCE CHAPMAN in 1989. Over the past two decades he has He was elected to the Academy of the Student Affairs and member of the he was the managing director of the served as a higher education financing Social Sciences of Australia in 1993, board of governors at the University of Vocational Training Company Kreuzberg Australian National consultant to the World Bank and the received an Order of Australia in 2003 ACHIM MEYER AUF Wuppertal. in Berlin. University governments of Thailand, Papua New for contributions to economic policy, and DER HEYDE Guinea, Mexico, Canada, the UK, Ethiopia, was elected president of the Australian He previously served as general director Achim Meyer auf der Heyde holds Deutsches Studentenwerk / Rwanda, Malaysia, Colombia, the US, Chile Society of Labour Economics (2004-07) in the Ministry for Education and Sports, degrees in economics, business and China; as a consultant to the Bradley and president of the Economics Society DSW Free and Hanseatic City of Hamburg administration and education. Review of Australian Higher Education of Australia (2007-13). He was made (1995-2003), where he was responsible on student income support; and as a distinguished fellow of the Economics consultant to the Australian Government’s Society of Australia in 2015. Base Funding Review. Chapman also served as a senior economic advisor to Prime Minister Paul Keating.

Matthew Chingos is a senior fellow at Completing College at America’s Public the Urban Institute, where he studies Universities, coauthored with William education-related topics at both the Bowen and Michael McPherson, was Christina Forsberg is acting director In 2008 the Swedish Government K-12 and postsecondary levels. His published by Princeton University Press in general of CSN and has overall appointed Forsberg as county police areas of expertise include class-size 2009. His work has also been published in responsibility for Swedish financial aid for commissioner in Gävleborg. She led 600 reduction, standardized testing, teacher academic journals, including the Journal of students. CSN pays more than SEK 30bln employees and during her tenure (2008- quality, student loan debt and college Public Economics, Journal of Policy Analysis (US$3.6bln) a year in financial aid and 2014) conducted a comprehensive cultural graduation rates. His current research and Management, Educational Evaluation administers student loans of around SEK overhaul within the police authority to examines the effects of state policy on and Policy Analysis, and Education Finance 200bln (US$24bnl). She joined CSN in 2015, actively involve personnel in day-to-day student achievement and whether better and Policy. He has received support initially as director of the Department of activities. The results included increased information on college quality affects from the US government and several Payment, overseeing payments of student confidence amongs victims of crime, where students choose to enroll. philanthropic foundations. aid and study allowance. She was appointed improved service for the general public, MATTHEW acting director general the same year. fewer young people suspected of crime Before joining Urban, Chingos was a Chingos received a BA in government and less violence in public environments. CHINGOS senior fellow at the Brookings Institution. and economics and a PhD in government His book Crossing the Finish Line: from Harvard University. Christina Forsberg is a qualified lawyer Urban Institute CHRISTINA with a long career in Swedish public For her work at the police authority, FORSBERG administration. She started as senior Christina Forsberg was awarded the enforcement officer (1995-2000) at the Leader of the Year (Årets Chef) accolade CSN Swedish Enforcement Authority and in 2015 by Swedish management and oversaw the development of the legal work business magazine Chef. Since then she in Gävleborg County. She was subsequently has been frequently engaged to speak promoted to various management on the topic of leadership. In 2016 positions, including enforcement director she was voted one of Sweden’s 150 For more information visit: in Gävle (2000-2005), regional enforcement “super communicators” by Resumé director in Eskilstuna (2005-2006) and head trade magazine. http://edpolicy.umich.edu/student-loans of the Regional Enforcement Department in Eastern Sweden (2006-2008).

-4- edpolicy.umich.edu/student-loans @edpolicyford #EPIstudentdebt -5- STUDENT SPEAKERS RESTRUCTURING LOANS

Rohit Chopra serves as a special adviser tenure at the CFPB, the agency finalized Susan Dynarski is a professor of public the relationship between postsecondary at the US Department of Education, rules to supervise student loan servicers, policy, education and economics at schooling and labor market outcomes where he focuses on the Administration’s secured hundreds of millions of dollars the University of Michigan, where she and the effect of high school reforms on initiatives to improve borrower service of relief for student loan borrowers and holds appointments at the Gerald R. academic achievement and educational and strengthen accountability for published widely-cited research on the Ford School of Public Policy, School of attainment. She has long advocated institutions. student loan market. Education, Department of Economics making higher education more accessible and Institute for Social Research and by lowering or removing barriers at Prior to joining the Department, Chopra Chopra has frequently testified before serves as co-director of the Education multiple stages of the process from served as assistant director of the Congress about the student loan market Policy Initiative. She is a faculty research application to enrollment. Her goal: policy Consumer Financial Protection Bureau, and opportunities for reform. Chopra associate at the National Bureau of amendments designed to make higher where he led the agency’s work on behalf was also a senior fellow at the Center for Economic Research and the Center for education more accessible for low-income of students and young consumers. He American Progress. He holds a BA from Analysis of Postsecondary Education and first-generation college students. She was also named by the secretary of the Harvard College and an MBA from the and Employment. She is a nonresident has continued to mount a vigorous case ROHIT CHOPRA Treasury as the agency’s first student Wharton School at the University SUSAN DYNARSKI senior fellow in the Economic Studies for reducing the length of the FAFSA. loan ombudsman, a new role established of Pennsylvania. Program at the Brookings Institution and US Department of Education by the Dodd-Frank Wall Street Reform Education Policy Initiative currently serves as president-elect at the Dynarski has testified about education and Consumer Protection Act. During his Association for Education Finance and and tax policy before the US Senate Policy. Dynarski has been a visiting fellow Finance Committee, the US House Ways at the Federal Reserve Bank of Boston and Means Committee and the President’s and Princeton University as well as an Commission on Tax Reform. She has associate professor at Harvard University. consulted broadly on student aid reform, Dynarski earned an AB in social studies including at the Federal Reserve Bank of Jason Delisle is director of the Federal featured on numerous national television and MPP from Harvard and a PhD in New York, the Federal Reserve Board of Education Budget Project, part of the and radio programs, including National economics from MIT. Governors, Consumer Financial Protection Education Policy Program at New America Public Radio, Fox Business News and PBS’s Bureau, White House, Treasury and Foundation. The overarching mission of NewsHour. Dynarski’s research focuses on the Department of Education, and frequently the project is to improve the quality of optimal design of financial aid, the consults with the Council of Economic public information on federal funding for Before joining New America in 2007, effectiveness of charter schools, the price Advisers on the college ratings system. education and to support well-targeted Mr. Delisle was a senior analyst on the elasticity of private school attendance, federal education policies. Republican staff of the US Senate Budget Committee, where he played a key role Mr. Delisle is a leading expert on the in developing education legislation. Prior federal student loan program and federal to that position, he served as a legislative financing for higher education. He has aide in the office of Representative provided expert testimony regarding the Thomas Petri (R-WI). Mr. Delisle holds Kevin James directs the higher education Kevin also spent four years as a legislative JASON DELISLE federal student loan program before the a master of public policy from George program at the Jain Family Institute, where aide working for US Representative US Congress and in federal court. Washington University and a bachelor he helps to foster the development of a Tom Petri (R-WI), who at the time was New America Foundation degree from Lawrence University in wider array of income-based financing a senior member of the Education and His work has appeared in a number Appleton, Wisconsin. options for higher education, with a Workforce Committee in the House of national publications, including the particular emphasis on expanding access of Representatives. In that role, he Washington Post and the Wall Street Journal. to high-quality educational pathways for oversaw the development of legislation Mr. Delisle and his work have been disadvantaged students. to substantially reform the federal student loan system and, separately, to Kevin previously worked as a research provide a legal framework for private fellow at the American Enterprise entities wishing to offer income-share Institute, where he focused on student agreements. loan reform, income-share agreements, Join the conversation on Twitter: KEVIN JAMES quality assurance in higher education and Kevin has a BS in computer science and a innovation. Kevin’s work was published in BA in political science, both from Virginia #EPIstudentdebt Jain Family Institute the Wall Street Journal, U.S. News & World Tech, as well as a MA in economics from Report’s “Knowledge Bank” blog, National George Mason University. Affairs, The Hill, RealClearPolicy, National Review Online and other publications.

-6- edpolicy.umich.edu/student-loans @edpolicyford #EPIstudentdebt -7- ABOUT THE EDUCATION POLICY INITIATIVE

The Education Policy Initiative brings together nationally-recognized scholars whose research focuses on education and other policies affecting youth.

We develop and disseminate policy-relevant research in partnership with local and state agencies, practitioners and policymakers.

The Education Policy Initiative is housed within the Gerald R. Ford School of Public Policy, one of America’s preeminent schools of public policy, located within one of the world’s premier research universities. The Ford School’s mission is to offer outstanding education for leadership in public policy analysis and public management and to excel in social science research that illuminates public policy issues and promotes better public policy.

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