“Wicked Hard” Financial Leveraging for Middle Income Families Rakin Hall, M.Ed University of Southern California

The Evolution of Degree Attainment Why be so smart? Paper Chase A brief history of wealth acquisition. Conquering Land acquisition Slavery Free labor Industrial revolution Wealth creation Information age Exchange of knowledge/technology

Altruism Building a university Keepers of the gate College was never intended for mass consumption. The three pillars of building a university Qualify/Quantify/Diversify Scholarship money Qualify Student Migration Quantify/Diversify

Paper Chase A 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 benefit The 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

“Wicked Hard” Financial Leveraging for Middle Income Families Rakin Hall, M.Ed University of Southern California