Center on Assets, Education, and Inclusion

  1. "We're Going to Do This Together"

    This study explores the relationship between exposure to a community-based Children’s Savings Account program and parents’ educational expectations for their children. Generally, quantitative results suggest that parents are more likely to expect their elementary-school children to attend college if they have a 529 account. While for high-income parents, just being exposed to the Promise Indiana campaign was more closely related to parents’ expectations than actually having a 529 account, overall, exposure is correlated most strongly with parents’ educational expectations when combined with having an account. Furthermore, having an account is even more important among low-income families than exposure alone. Qualitative findings further explore parents’ experiences in Promise Indiana and suggest that most have formed college-saver identities.

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    Citation

    Rauscher, E., Elliott, W., O'Brien, M., Callahan, J., Steensma, J. (2016) “We’re Going to Do This Together”: Examining the Relationship between Parental Educational Expectations and a Community-Based Children’s Savings Account Program, Brief. Lawrence, KS: University of Kansas, Center on Assets, Education, and Inclusion.

    Authors

    Rauscher, Emily, Elliott III, William, O'Brien, Megan, Callahan, Jason, Steensma, Joe

    Children's Savings Account Brief Year 2016

  2. How student debt is helping to increase the wealth gap and reduce the return on a degree

    In a time when wealth inequality increasingly threatens the U.S.—our sense of fairness and possibility, the fabric of our shared democracy, and the institutions that are supposed to undergird our economic opportunities--and when these anxieties are voiced particularly acutely by students who contemplate their own futures and question the ability of higher education to act as an equalizer in society, the discussion around student debt has grown stale. These conversations, usually consisting of the same few voices, echo with researchers investigating questions that all too often seek to maintain the status quo rather than challenge it and that seem, to a public plagued with disillusionment that borders on panic, divorced from their lived experiences. Within these confines, proposed solutions tend to mostly comprise tweaks around the margins (e.g., income-based repayment modification), rather than fundamental reconsiderations of how to finance higher education in a way that will simultaneously strengthen the return on a degree, improve educational outcomes such as attainment, and reduce wealth inequality. In this brief, I seek to provide a fresh look at what America gets from student loans. This begins with shifting the conversation from talking about whether or not college pays off for students who have to borrow to shining a bright light on the equity of having to pay for college with student loans. I do this by bringing together bodies of evidence that reveal: (a) the amount of wealth your family has matters for whether you will attend and complete college, (b) low-income and minority students receive less of a return on a degree than their wealthier, white counterparts, and (c) college goers—including those who graduate—with debt have less wealth than their peers without debt. This not only has implications for borrowers but for their children who grow up with less wealth and who will then be less able to use education to climb the economic ladder themselves. Given this, I conclude that a financial aid system for the 21st Century must not only help students pay for college but also help them build assets. Children’s Savings Accounts (CSAs) work on many fronts, from early preparation to college access to completion and then post-college financial outcomes, to address concerns about the differential return on a degree and wealth inequality. However, in order to make CSAs a true tool for fighting wealth inequality, they must be combined with a significant wealth transfer. Possibilities for this wealth transfer might include such approaches as augmenting existing scholarship or grant programs, such as the Pell Grant program, with opportunities for early-commitment asset building or diverting funds now going to poorly-targeted tax subsidies. It has been estimated that CSAs with a wealth transfer could reduce the racial wealth gap in America by 20% to 80%, depending on participation and the size of the investment in these accounts. This pivot to asset-based financial aid could be the centerpiece of a new economic mobility system that makes good on the promise made to American children, that through their own effort and ability in school they can achieve the American Dream.

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    Authors

    Elliott III, William

    Children's Savings Account Brief Year 2016

  3. Initial Elementary Education Finding From Promise Indiana's Children's Savings Account Program

    The study conducts an initial examination of school data and their associations with participation and saving in the Promise Indiana Children’s Savings Account (CSA) program. Data on savings were obtained from the onset of the program through February 2016 from Promise Indiana via the Indiana CollegeChoice 529 plan manager (Ascensus College Savings) and merged with administrative data on student outcomes for the 2014- 2015 school year. The primary research questions guiding this analysis is whether or not simply having a CSA, being a saver, or the amount saved is associated with lower absenteeism and/or higher reading and math scores. Given the importance of family income to both savings behaviors and academic achievement, we looked at these questions for the sample of students overall, and, separately, for the sample of low-income students (defined as free/reduced lunch participants). In this study, there is no evidence to suggest that having a CSA, being a saver (i.e., having at least one family or champion contribution), or the amount deposited are related to children’s absences. However, among the subsample receiving free/reduced lunch, having a CSA is positively associated with both children’s reading and math scores; however, this association is not found in the aggregate sample. In contrast, amount contributed has a positive association with the aggregate sample’s math and reading scores but not with the scores of children receiving free/reduced lunch. Further, being a saver is associated with reading scores for both the aggregate and free/reduced lunch samples. While more research is needed before policy conclusions can be drawn, these findings suggest that CSA programs may complement schools’ academic objectives.

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    Citation

    Elliott, W., Kite, B., O'Brien, M., Lewis, M., and Palmer, A. (2016) Initial Elementary Education Finding From Promise Indiana's Children's Savings Account Program. Lawrence, KS: University of Kansas, Center on Assets, Education, and Inclusion.

    Authors

    Elliott III, William, Kite, Benjamin, O'Brien, Megan, Lewis, Melinda, Palmer, Ashley

    Children's Savings Account Working Paper Year 2016

  4. We’re Going to Do This Together”

    This paper presents quantitative and qualitative evidence of the relationship between exposure to a community-based Children’s Savings Account (CSA) program and parents’ educational expectations for their children. First, we examine survey data collected as part of the rollout and implementation of The Promise Indiana CSA program. Second, we augment these findings with qualitative data gathered from interviews with parents whose children have Promise Indiana accounts. Though results differ by parental income and education, the quantitative results using the full sample suggest that parents are more likely to expect their elementary-school children to attend college if they have a 529 account or were exposed to the additional aspects of The Promise Indiana program (i.e., the marketing campaign, college and career classroom activities, information about engaging champions, trip to a University, and the opportunity to enroll into The Promise). Parents who were both exposed to the additional aspects of The Promise Indiana program and have a 529 account are over three times more likely to expect their child to attend college than others, increasing to 13 times more likely among parents with no college education. With regard to the qualitative analysis, findings suggest that most parents who participated in the qualitative interviews have formed a college-saver identity (i.e., they expect their child to attend college and see savings as a strategy for paying for it). That is, they have formed an identity of themselves as having a child who is college-bound, and see saving as a path to paying for college. Moreover, there is evidence that Promise Indiana is helping to form a college-going culture among those enrolled. Overall, results suggest a community-based CSA program – Promise Indiana – is associated with nontrivial benefits for families.

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    Citation

    Rauscher, E., Elliott, W., O'Brien, M., Callahan, J., Steensma, J. (2016) “We’re Going to Do This Together”: Examining the Relationship between Parental Educational Expectations and a Community-Based Children’s Savings Account Program. Lawrence, KS: University of Kansas, Center on Assets, Education, and Inclusion.

    Authors

    Rauscher, Emily, Elliott III, William, O'Brien, Megan, Callahan, Jason, Steensma, Joe

    Children's Savings Account Working Paper Year 2016

  5. A Regional Approach to Children's Savings Account Development: The Case of New England

    This paper chronicles the development of Children’s Savings Account (CSA) policy in the states that comprise the New England region: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. This paper does not seek to compare CSA programs within the New England states directly but does detail the origins, aims, delivery systems, incentives, financing, enrollment mechanisms, and engagement approaches employed in each state, as well as challenges encountered, potential research contributions, and opportunities for expansion and/or integration into other policy venues. As described in this overview, this policy development can be best understood not as individual efforts but a regional strategy, facilitated by the New England CSA Consortium. This regional approach may hold considerable promise for advancing children’s savings nationally. As defined here, CSAs are progressive asset investments capable of cultivating improved educational attainment and, then, catalyzing greater upward mobility, particularly for disadvantaged children. Part of New England’s CSA activity has included progress toward agreed-upon metrics for gauging the effects of CSAs on indicators important to the state actors championing them, and future years will provide important insights into the potential for this intervention to support critical educational and economic development objectives.

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    Citation

    Lewis, M. K. and Elliott, W. (2015). A regional approach to children's savings account development: The case of New England.

    Authors

    Lewis, Melinda, Elliott III, William

    Children's Savings Account Report Year 2015

  6. Building College-Saver Identities among Latino Immigrants: A Two-Generation Prosperity Kids Account Pilot Program

    Children’s Savings Accounts (CSAs) are savings vehicles, usually initiated early in a child’s life and usually designated for postsecondary educational expenses (Elliott & Lewis, 2014). While CSAs are financial products, typically held either in a deposit institution such as a credit union or bank or in a state-supported 529 college savings plan, they are more than just an account. CSAs are best understood as transformative asset-based interventions that reshape the distributional consequences of the current educational structure (Elliott & Lewis, 2015). As such, CSAs have significant implications for improving educational outcomes, particularly among low-income and otherwise disadvantaged children (see Elliott, 2013 re: asset effects on children’s educational attainment). This potential to close achievement gaps by cultivating greater educational expectations, engagement, and persistence among children less likely to succeed without such interventions has captured policymakers’ attention and galvanized significant momentum for Children’s Savings Accounts. In recent years, CSAs have been implemented by school districts (such as Kindergarten-to-College in San Francisco), state governments (Nevada’s College Kickstart and Connecticut’s CHET Baby Scholars), state/private partnerships (Maine’s Harold Alfond College Challenge is funded by the Harold Alfond Scholarship Foundation, but administered through the state’s NextGen 529 plan), and community-based organizations (Promise Indiana, started by the YMCA of Wabash County, as well as New Mexico’s Prosperity Kids, the focus of this report). There is municipal movement, as well, with a CSA recently announced in St. Louis, Missouri, and programs soon to come online such as in Boston, Massachusetts. State leaders are also exploring ways to integrate the principles of children’s asset building into their work in order to leverage the benefits of CSAs on educational outcomes within their respective states. These efforts include a two-generation approach in public assistance programs in Colorado, a child support savings initiative in Kansas, and new CSA pilots in development in Vermont, Massachusetts, and New Hampshire.

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    Authors

    Elliott III, William

    Children's Savings Account Working Paper Year 2015

  7. The Real College Debt Crisis: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream

    Citation

    Elliott, W. and Lewis, M. (2015). The Real College Debt Crisis: How Student Borrowing Threatens Financial Well-Being and Erodes the American Dream. Broomfield, CO: Praeger.

    Authors

    Elliott III, William, Lewis, Melinda

    College Debt Book Year 2015

  8. The relationship between income and net worth in the U.S.A

    Citation

    Rauscher, E. and Elliott, W. (2015). The relationship between income and net worth in the U.S.A: Virtuous cycle for high but not low income households. Journal of Poverty

    Authors

    Rauscher, Emily, Elliott III, William

    Wealth Transfer Journal Article Year 2015

  9. Wealth as security: Growth curve analyses of household income and net worth during a recession

    Building on evidence of increasing inequality with the 2008–2009 recession, we asked whether households experienced different financial trajectories through the recession depending on initial income and net worth. Using growth curve models of households headed by young adults in the Panel Study of Income Dynamics, we compared the relationship between initial income and net worth and the rate of change of income and net worth from 1989 to 2011 among households with income above and below $50,000. We found different patterns of income change and different relationships among income, net worth, and their rates of change between high- and low-income categories. Results suggest initial wealth helped to stabilize income and wealth changes among higher income households, reducing financial insecurity.

    Citation

    Rauscher, E. and Elliott, W. (2015). Wealth as security: Growth curve analyses of household income and net worth during a recession. Journal of Family and Economic Issues, March.

    Authors

    Rauscher, Emily, Elliott III, William

    Wealth Transfer Journal Article Year 2015

  10. Harnessing Assets to Build an Economic Mobility System: Reimagining the American Welfare System

    Harnessing Assets to Build an Economic Mobility System provides new empirical insights that help to explain what so many Americans intuitively grasp, and what U.S. policy debates so studiously ignore: Upward economic mobility and a chance at financial security are slipping beyond the grasp of many households. This report examines the drivers of mobility by distinguishing between standard of living, which is related to consumption and available income, and economic mobility and wellbeing, which require assets in addition to income and fuel multiplier effects. The former is supported by the consumption-based welfare system, including programs such as Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP; formerly food stamps), which is designed to help households exit poverty and consume at a level consistent with a near-poverty level. Upward mobility and wellbeing is advanced by an asset-based welfare system, largely made up of tax credits and deductions that helps more advantaged Americans accumulate assets. By highlighting the significance of assets for achieving economic mobility and true wellbeing, this analysis emphasizes the importance of building policy structures capable of helping households generate assets, not just increase income. The report proposes Economic Mobility Accounts—tax-advantaged savings accounts that help Americans of all income levels save and accrue assets across the life course—as a policy structure that may once again make upward mobility accessible to all Americans.

    Citation

    Elliott, W. and Lewis, M. (2014). Harnessing Assets to Build an Economic Mobility System: Reimagining the American Welfare System. Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Elliott III, William, Lewis, Melinda

    Wealth Transfer Executive Summary Year 2014

  11. Harnessing Assets to Build an Economic Mobility System: Reimagining the American Welfare System

    Harnessing Assets to Build an Economic Mobility System provides new empirical insights that help to explain what so many Americans intuitively grasp, and what U.S. policy debates so studiously ignore: Upward economic mobility and a chance at financial security are slipping beyond the grasp of many households. This report examines the drivers of mobility by distinguishing between standard of living, which is related to consumption and available income, and economic mobility and wellbeing, which require assets in addition to income and fuel multiplier effects. The former is supported by the consumption-based welfare system, including programs such as Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP; formerly food stamps), which is designed to help households exit poverty and consume at a level consistent with a near-poverty level. Upward mobility and wellbeing is advanced by an asset-based welfare system, largely made up of tax credits and deductions that helps more advantaged Americans accumulate assets. By highlighting the significance of assets for achieving economic mobility and true wellbeing, this analysis emphasizes the importance of building policy structures capable of helping households generate assets, not just increase income. The report proposes Economic Mobility Accounts—tax-advantaged savings accounts that help Americans of all income levels save and accrue assets across the life course—as a policy structure that may once again make upward mobility accessible to all Americans.

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    Citation

    Elliott, W. and Lewis, M. (2014). Harnessing Assets to Build an Economic Mobility System: Reimagining the American Welfare System. Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Elliott III, William, Lewis, Melinda

    Wealth Transfer Report Year 2014

  12. Lessons to learn: Canadian insights for U.S. children’s savings account (CSA) policy

    Related items: Examining The Canadian Education Savings Program and Its Implications for U.S. Child Savings Accounts (CSA) Policy Webinar: Canadian Savings Education Report

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    Citation

    Lewis, M. and Elliott, W. (2014). Lessons to learn: Canadian insights for U.S. children’s savings account (CSA) policy (AEDI Brief 01-14). Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Lewis, Melinda, Elliott III, William

    Children's Savings Account Brief Year 2014

  13. Solving the paradox of high college expectations: The role of children’s savings accounts

    Citation

    Elliott, W. (2014). Solving the paradox of high college expectations: The role of children’s savings accounts. In R. Cramer & T. Williams Shanks (Eds.), The assets perspective: The rise of asset building and its impacts on social policy. New York, NY: Palgrave MacMillan.

    Authors

    Elliott III, William

    Children's Savings Account Chapter Year 2014

  14. Student loan debt: Can parent's college savings help?

    Postsecondary education costs in the United States today are rising with an increasing shift from societal responsibility to individual burden, thereby driving greater student borrowing. Evidence suggests that (i) such student debt may have undesirable educational effects and potentially jeopardize household balance sheets and (ii) student loans may better support educational attainment and economic mobility if accompanied by other, non-repayable financial awards. However, given declines in need-based aid and falling state support for postsecondary costs, policymakers and parents alike have failed to produce a compelling complement to debt-dependent financial aid that is capable of improving outcomes and forestalling assumption of ever-increasing student debt for a majority of U.S. households. This article, which relies on longitudinal data from the Educational Longitudinal Study, finds parental college savings may be an important protective factor in reducing debt assumption. However, several other factors increase the likelihood students will borrow: perceiving financial aid as necessary for college attendance, expecting to borrow to finance higher education, having moderate income, and attending a for-profit college. After controlling for student and school variables, the authors find that parental college savings increase a student’s chance of accumulating lower debt (less than $2,000) compared with students lacking such savings. Policy innovations to increase parental college savings—such as children’s savings accounts—could be an important piece of the response to the student debt problem in the United States.

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    Citation

    Elliott, W., Lewis, M., Nam, I., & Grinstein-Weiss, M. (2014). Student loan debt: Can parent's college savings help? Federal Reserve Bank of St. Louis, Review, 96 (4), 331-57.

    Authors

    Elliott III, William, Lewis, Melinda, Nam, Ilsung, Grinstein-Weiss, Michal

    College Debt Journal Article Year 2014

  15. Student loans: Are we getting our money’s worth?

    Citation

    Elliott, W. (2014). Student loans: Are we getting our money’s worth? Change: The Magazine of Higher Education, 46(4), 26-33.

    Authors

    Elliott III, William

    College Debt Journal Article Year 2014

  16. The American dream and moving up

    Citation

    Elliott, W. (February, 2014). Op-Ed. The American dream and moving up. Spotlight on Poverty and Opportunity.

    Authors

    Elliott III, William

    Wealth Transfer Op-Ed Year 2014

  17. The effect of wealth inequality on higher education outcomes: A critical review.

    American society reflects considerable class immobility, much of which may be explained by the wide gaps in college completion rates between economically advantaged and disadvantaged groups of students. First, we discuss the factors that lead to unequal college completion rates and introduce assets as an explanation often ignored by stratification scholars. We then discuss how a legacy of wealth inequality has led to wealthy students having an advantage at the financial aid bargaining table over low-income and minority students. We conclude by discussing how asset-building policies such as children’s savings accounts offer a potential policy strategy to alter the distributional consequences of the current financial aid system and help level the playing field.

    Citation

    Rauscher, E. and Elliott, W. (2014). The effect of wealth inequality on higher education outcomes: A critical review. Sociology Mind, 4, 282-297.

    Authors

    Rauscher, Emily, Elliott III, William

    Wealth Transfer Journal Article Year 2014

  18. The Student Loan Problem in America: It is Not Enough to Say, "Students Will Eventually Recover"

    According to Shapiro, the American Dream “is the promise that those who work equally hard will reap roughly equal rewards” (Shapiro, 2004, p. 87); that is, the American Dream holds that this country is a meritocracy where effort and ability are the primary determinants of success. Institutions provide the economic conditions that make it possible for people to believe that their hard work and ability will determine their success or failure. This task is facilitated by Americans’ strong desire to feel as though their destiny can be controlled and that institutions will ‘echo’ their own contributions, rather than work against them.1 Primed to look for evidence of this ‘effort plus ability equals outcomes’ equation, Americans cling to this ideal, even as it recedes in reality for many. There is no evidence that Americans today are less capable or less committed than in previous generations, in the aggregate. Instead, particularly in today’s highly specialized, technology driven, global world, the upward mobility that animates the American Dream is only possible if effort and ability are combined with institutional might.

    Related items: Briefs

    Student Loan Debt Threatens Household Balance Sheets Status Quo: Divergent Financial Aid Systems Yield Disparate Outcomes High-Dollar Student Debt May Compromise Educational Outcomes Before College: Building Expectations and Facilitating Achievement Executive Summary

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Infographics

    Today: Two Paths To Higher Ed Student Loan Debt: Consequences Tomorrow . . . And For Years to Come Reports

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity Unequal Outcomes: Student Loan Effects on Young Adults’ Net Worth Accumulation

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    Citation

    Elliott, W. and Lewis, M. (2014). The student loan problem in America: It is not enough to say, “students will eventually recover.” Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Elliott III, William, Lewis, Melinda

    College Debt Report Year 2014

  19. Unequal Outcomes: Student Loan Effects on Young Adults' Net Worth Accumulation

    Most people do not dream of going to college and becoming rich; that is, higher education is, for most, a path to the American Dream of middle-class financial security and upward mobility, not a perceived ticket to great riches. Generally, when people dream of being rich, they think of being a professional athlete, an actor, a singer, or entrepreneur, or winning the lottery. People may dream of getting rich, but it is not this illusion of quick fortune that animates individual actions nor characterizes the American ideal. Instead, Americans expect and work toward the opportunity to become middle-class through education, and it is this promise that underscores our vision of ourselves and our presumed ‘contract’ with the institutions that govern U.S. society. In recognition of the role that educational attainment plays in opening the door to this archetypal middle-class ideal, U.S. policy decided some time ago that children’s work would be school work. Children and their parents believe that the reward for innate intellectual ability and expended academic effort will be a chance to reach, not ease and opulence, but security and upward progress. U.S. policy affirms that education is the primary path for achieving the American Dream. Therefore, quick climbs from rags to riches are presumed to be quixotic, fleeting, and not necessarily even desirable. In contrast, the denial of a fair shot to enter and stay in the middle class through education imperils the foundation on which our collective identity rests and threatens to rewrite the American narrative of ‘success’ through effort and ability, mediated through attainment of education.

    Related items: Briefs

    Student Loan Debt Threatens Household Balance Sheets Status Quo: Divergent Financial Aid Systems Yield Disparate Outcomes High-Dollar Student Debt May Compromise Educational Outcomes Before College: Building Expectations and Facilitating Achievement Executive Summary

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Infographics

    Today: Two Paths To Higher Ed Student Loan Debt: Consequences Tomorrow . . . And For Years to Come Reports

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover”

    Read Publication

    Citation

    Elliott, W., Lewis, M., Johnson, P. (2014). Unequal outcomes: Student loan effects on young adults’ net worth accumulation. Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Elliott III, William, Lewis, Melinda

    College Debt Report Year 2014

  20. Are Student Loans are Widening the Wealth Gap: Time to Focus on Equity

    According to Dr. Thomas Shapiro, the American dream “is the promise that those who work equally hard will reap roughly equal rewards” (Shapiro, 2004, p. 87). Higher education is widely regarded as a vehicle for sustaining this dream. This belief in the potential of education to act as an equalizer is supported by research, which consistently shows that a person who attains a four-year college degree earns more than a person who does not attain a four-year degree. Indeed, there is considerable evidence that educational achievement is the primary way that Americans born in poverty may leave it. Stories of those who escape poverty through education serve to support a reassuring narrative: providing access to higher education is all that is needed to keep the American dream vibrant.

    There have always been holes in this vision of American success, but today more than ever, higher education’s role as a force for equity has deteriorated, such that college may serve more to perpetuate the status quo than to create ladders of opportunity. Tracing and naming the factors that contribute to the erosion of higher education’s equalizing role is an essential step in reinvigorating the American dream. Uncovering those factors begins with an honest conversation about student debt.

    Related items: Briefs

    Student Loan Debt Threatens Household Balance Sheets Status Quo: Divergent Financial Aid Systems Yield Disparate Outcomes High-Dollar Student Debt May Compromise Educational Outcomes Before College: Building Expectations and Facilitating Achievement Executive Summary

    The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Infographics

    Today: Two Paths To Higher Ed Student Loan Debt: Consequences Tomorrow . . . And For Years to Come Reports

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Unequal Outcomes: Student Loan Effects on Young Adults’ Net Worth Accumulation

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    Authors

    Elliott III, William, Lewis, Melinda

    College Debt Executive Summary Year 2013

  21. As I see it – Declaring a new war on poverty

    Citation

    Elliott, W. (November, 2013). Op-Ed. As I see it – Declaring a new war on poverty. Kansas City Star/joco 913.

    Authors

    Elliott III, William

    Wealth Transfer Op-Ed Year 2013

  22. Before College: Building Expectations and Facilitating Achievement

    By giving students and families a clear strategy for how to overcome cost barriers, college savings increase the likelihood of enrollment. The prospect of significant borrowing, on the other hand, does little to orient students towards college as a likely part of their futures.

    Even small levels of savings make enrollment more likely. Specifically, 45% of low or moderate-income students with no account, 71% with more than $1 of school savings, and 72% of students with school savings of $500+ enroll in college.

    On the longer-term challenge of equipping students to succeed, CSAs also show promise, largely through reinforcing a college-saver identity (expects to graduate and sees savings as a strategy for paying for college) that increases engagement and builds expectations.

    Conversely, going through school without assets can compromise achievement. Spells of asset poverty prior to age 11 have a particularly negative effect on academic achievement.

    Related items: Briefs

    Student Loan Debt Threatens Household Balance Sheets Status Quo: Divergent Financial Aid Systems Yield Disparate Outcomes High-Dollar Student Debt May Compromise Educational Outcomes Executive Summary

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Infographics

    Today: Two Paths To Higher Ed Student Loan Debt: Consequences Tomorrow . . . And For Years to Come Reports

    Student Loans are Widening The Wealth Gap: Time to Focus on Equity The Student Loan Problem in America: It is Not Enough to Say, “Students Will Eventually Recover” Unequal Outcomes: Student Loan Effects on Young Adults’ Net Worth Accumulation

    Read Publication

    Authors

    Elliott III, William, Lewis, Melinda

    College Debt Brief Year 2013

  23. Building expectations, delivering results: Asset-based financial aid and the future of higher education

    The price of higher education has increased dramatically in recent decades as higher education financing has shifted from a collectively funded public good to reliance on individual and family contributions. This cost burden has implications for education’s ability to serve as an equalizing force in the U.S., but asset-based financial aid models may have the potential to transform our financial aid system. While high student loan debt may hinder college completion and even serve as a deterrent to enrollment among some disadvantaged students, promoting asset development may reduce the need for loans and improve educational outcomes. Policies that combine smaller student loans with asset-based approaches could create a financial-aid model that builds college readiness among low-income students, improves their access to college, and increases their chances of success in higher education and of financial security post-graduation.

    Related items: Briefs

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    Building Expectations, Delivering Results: Asset-Based Financial Aid and The Future of Higher Education Infographics

    College Savings Accounts: More Degrees, Less Debt The Role of Institutional Facilitation in Academic Success Reports

    Examining The Canadian Education Savings Program and Its Implications for U.S. Child Savings Accounts (CSA) Policy

    Citation

    Elliott, William (Ed.), (2013). Building expectations, delivering results: Asset-based financial aid and the future of higher education. In Biannual report on the assets and education field. Lawrence, KS: Assets and Education Initiative (AEDI).

    Authors

    Elliott III, William

    Children's Savings Account Brief Year 2013

  24. Can CSAs help resolve the expectation-attainment paradox? Developing a college-saver identity in children

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    Citation

    Elliott, W. (2013). Can CSAs help resolve the expectation-attainment paradox? Developing a college-saver identity in children (CSD Fact Sheet 13-30). St. Louis, MO: Washington University, Center for Social Development.

    Authors

    Elliott III, William

    Children's Savings Account Fact Sheet Year 2013

  25. Connections with banking institutions and diverse asset portfolios in young adulthood: Children as potential future investors

    A central hypothesis of Child Development Accounts (CDA) suggests that savings accounts in childhood lay a foundation for connecting to mainstream banking institutions and diversifying asset portfolios in young adulthood and beyond. While children may have limited savings to invest initially, they are financial actors who may increasingly invest money into different types of savings products over time. This paper uses propensity score weighted, longitudinal data from the Panel Study of Income Dynamics and its supplements to examine the types of financial and nonfinancial assets owned by young adults and whether or not they are more likely to own these assets when they have savings accounts as children. The most commonly owned assets in young adulthood included savings accounts (89%), vehicles (54%) and credit cards (51%). Smaller percentages owned stocks (9%), bonds (6%), and homes (8%). On average, young adults owned two to three different assets. Having savings accounts in childhood was associated with being two times more likely to own savings accounts, two times more likely to own credit cards, and four times more likely to own stocks in young adulthood, compared to not having savings accounts in childhood. Young adults' ownership of more total financial assets was also associated with having savings accounts in childhood. Findings provide some supporting evidence of demand for children's savings accounts. Policy endeavors that remove barriers to account ownership may be advantageous for children and mainstream banks.

    Citation

    Friedline, T., & Elliott, W. (2013). Connections with banking institutions and diverse asset portfolios in young adulthood: Children as potential future investors. Children and Youth Services Review, 35(6), 994-1006.

    Authors

    Friedline, Terri, Elliott III, William

    Children's Savings Account / Financial Inclusion Journal Article Year 2013