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Dēmos | Economic Policy Institute
   THE SQUEEZE IS ON: THE IMPACT OF THE RECESSION ON YOUNG PEOPLE
   Even before the recession, today’s young adults were on track to have the dubious distinction of being the rst genera-
tion in a century not likely to end up better o than their parents. Stagnant wages, job insecurity, the decline in employer-
sponsored health insurance and retirement bene ts, rapid increases in the cost of basic expenses, soaring debt, and mini-
mal savings have diminished the prospects for opportunity and mobility. irty years in the making, government policy
has failed to cushion the blow of these trends.
   Although the recession has a ected Americans of all ages, adults in their 20s and early 30s entered the downturn at a
distinct disadvantage—trying to complete their educations and enter and get ahead in the job market in the midst of the
deepest economic crisis since the Great Depression. e current recession jeopardizes not only their immediate prospects
but also their long-term chances for economic security and success.1


EMPLOYMENT AND EARNINGS                                                CHART 2: UNEMPLOYMENT RATE BY RACE FOR 16 24 YEAR
                                                                       OLDS, APRIL JUNE 2009
      e recession has already had a devastating toll on young
                                                                       30%
workers, whose unemployment and underemployment
rates are higher than for any other age group. e national                                                                    29.1%
                                                                       25%
unemployment rate for September 2009—9.8 percent—was
the highest in 26 years,2 but this gure masks the dismal
                                                                       20%
labor market conditions faced by the youngest workers.                                                  19.4%
During the second quarter of 2009, the unemployment
                                                                       15%         16%
rate for workers under age 25 was 17.3 percent; in contrast,
the unemployment rate for workers ages 45 to 54 was 6.9
                                                                       10%
percent (see Chart 1).3

CHART 1: UNEMPLOYMENT RATE BY AGE, APRIL JUNE 2009                      5%

20%
                                                                        0%
                                                                                    White               Hispanic         African American

       17.3%
15%                                                                    Source: Bureau of Labor Statistics of the U.S. Department of Labor:
                                                                       Unemployment rate, unadjusted.

                                                                       workers ages 25 to 34 was 17.1 percent and 13.7 percent for
10%
                    10.1%                                              workers ages 35 to 44.4
                                  7.9%                                    Research has shown that entering the labor force during
                                               6.9%        6.7%        a recession can suppress initial wages and have long-term
 5%
                                                                       consequences for earnings, even among college graduates.
                                                                       A recent study shows that in their rst year out of college,
 0%                                                                    white men entering the workforce in a bad economy earn
       16 to 24     25 to 34     35 to 44     45 to 54   55 and over
                                                                       6 to 8 percent less for each additional percentage point in
Source: Bureau of Labor Statistics of the U.S. Department of Labor:    the national unemployment rate.5 Although the magnitude
Unemployment rate, seasonally adjusted.                                of this e ect decreases over time, the impact is long term:
                                                                          een years a er college graduation, wages are still lower
   Young people of color and those without college degrees             for those who entered the labor market when unemploy-
have been the hardest hit by unemployment. Young Afri-                 ment was high.6 Given the depth of unemployment among
can Americans face the highest unemployment rate, at 29.1              young people, the wage suppression e ect of this recession
percent for the second quarter of 2009 (see Chart 2).                  could potentially have lifelong consequences for a genera-
                                                                       tion of workers.
      e situation facing young jobseekers is even more grim
when taking underemployment into account—the “under-                   POST SECONDARY EDUCATION
employed” include workers who want full-time work but
can nd only part-time hours, people who have given up                     Completing a credential beyond high school—whether
looking for work, and the unemployed. e overall rate of                a professional certi cate or an associate’s or bachelor’s
underemployment doubled between 2007 and 2009, but the                 degree—is the best way for young people to increase their
  gures are highest for young workers. During the second               earnings and long-term economic prospects. Yet recessions
quarter of 2009, young workers under 25 had an under-                  have di erent e ects on college enrollment depending on
employment rate of 31.9 percent. Underemployment for                   income—young people with greater nancial means are
Dēmos | Economic Policy Institute
more likely to enroll in school when unemploy-              CHART 3:
ment is high. But young people from low- and                ATTENDANCE STATUS OF TWO AND FOUR YEAR UNDERGRADUATES
moderate-income families with few assets are                100%
less likely to enroll in school when economic
conditions are tough: they are more likely to
feel pressure to work and less able to take on                                                                                          % Full-time,
student debt.7                                                80%                                                                       Public 4-year


   Long before the recession, college gradu-
ation rates had stagnated—nearly half of                      60%                                                                        % Part-time,
students who enroll in college will drop out                                                                                             Public 2-year

before earning a degree. Even among the
students most likely to succeed—those who                                                                                                % Full-time,
begin college as full-time students at four-year              40%                                                                        Public 2-year

institutions—only three out of ve complete
a bachelor’s degree within six years.8 Among
young students (under age 24) enrolled at                     20%                                                                        % Part-time,
                                                                                                                                         Public 4-year
community colleges, fewer than two out of ve
complete some kind of credential within six
years.9                                                        0%
                                                                1970 1975 1980 1985 1990 1995 2000 2005
   Although there are many reasons for what
                                                      Source: U.S. Department of Education, National Center for Education Statistics, “The Condition
analysts refer to as a college drop-out crisis,       of Education, 2009.” Indicator 10, Table A-10-2.
  nancial challenges are paramount. College
costs have risen dramatically over the last 25                          nd su cient employment to support themselves and pay
years, while nancial aid policies have increasingly aban-             for school, yet they are ill-equipped to make up the di er-
doned students with the greatest nancial need, forcing                ence by taking on debt in the form of student loans.12
students and their families to pay more out of pocket and
rely more heavily on loans.                                           DEBTS AND ASSETS
   Seldom noted is that low- and moderate-income students                  Young adults entering the labor force tend to have lim-
are working longer hours and more of them are enrolling               ited savings and other nancial assets. e recession—with
only part time, putting them at risk for dropping out. Re-            high unemployment, underemployment, lower salaries
search clearly indicates that full-time enrollment and part-          for entry-level workers and barriers to college comple-
time employment of less than 15 hours per week provide                tion—hampers the ability of young people to build assets
the optimal situation for young students to concentrate on            now and in the future. As more young workers enter the
their studies and nish their degree.   10                             workforce with debt (such as credit card debt, student loans,
                                                                      and car loans), their capacity to save for big-ticket items
   In 1970, 14 percent of full-time college students worked           such as a home is diminished. Falling behind in debt pay-
more than part time (20 hours per week or more). More                 ments threatens their credit scores, jeopardizing future asset
than 30 years later, that percentage had doubled. As student building.
employment and work hours have increased, so have rates
of part-time enrollment—a trend that has disproportion-                       e latest data show that 67 percent of graduating stu-
ately a ected young community college students. In 2007-              dents at four-year institutions le college with debt. In 2008,
08, nearly 60 percent of young community college students             the average debt of students graduating with loans was
enrolled part time compared to just under 20 percent of               $23,200, an increase of 24 percent over 2004 when student
students at four-year institutions (see Chart 3).11                   debt averaged $18,650.13

   For students with inadequate nancial support, employ-                   According to a survey on household debt conducted
ment is an indispensible strategy for attending school. But           by Dēmos last year, low- and middle-income Americans
when long work hours lead students to enroll only part                under age 35 with credit card debt averaged about $9,000 in
time, the risk increases that they will drop out and not com- such debt. Over half (55 percent) of respondents under 35
                                                                                     14


plete a degree. Even if they are able to stay in school, enroll- reported using credit cards to pay for basic living expenses
ing part time extends the time it takes to complete a degree. in the past year because they did not have enough cash—
                                                                      whether from earnings or savings—to cover these expens-
   In short, while the high unemployment of a recession               es.15 Far from being a rare occurrence, those who reported
may encourage young people who are nancially better o                 using credit cards for basic expenses did so on average for
to return to school, lower-income young people are con-                 ve months out of the year.16
fronted with a double bind—they may nd it di cult to
Dēmos | Economic Policy Institute
    CHART 4: AVERAGE DEBT AMONG GRADUATING SENIORS                             CONCLUSION
    WITH STUDENT LOANS, 2004 AND 2008
                                                                                  A quick recovery from the current recession is important


!
    $25,000                                                                    for young people not only for their immediate economic
                                                                               livelihood but also for their ability to build a sound eco-
                                                         $23,200               nomic foundation for the future. At the moment, young
    $20,000                                                                    adults are facing high unemployment and underemploy-
                         $18,650                                               ment, wages suppressed by the recession, increased barriers
                                                                               to paying for school, and high-cost debt—all of which have
    $15,000
                                                                               ripple e ects and potential long-term economic conse-
                                                                               quences. Not only does the recession threaten the economic
    $10,000                                                                    well-being of today’s young adults, their economic insecu-
                                                                               rity threatens us all.
      $5,000                                                                       Yet even if the recession were to end tomorrow, young
                                                                               people face enormous economic challenges as they seek to
                                                                               complete their educations, join the labor market, start fami-
          $0
                               2004                         2008               lies, build assets and plan for the future. Recent policies to
                                                                               end deceptive and abusive credit card practices and propos-
    Source: Project on Student Debt “Quick Facts about Student Debt”, August
    2009, projectonstudentdebt.org/ les/File/Debt_Facts_and_Sources.pdf.       als to reform health care and invest in higher education will
                                                                               help. But it will take much bolder and more far-reaching
                                                                               policy reforms to redress the decades of declining economic
       Onerous levels of debt pose a serious impediment to                     opportunity and mobility that have le younger Americans
      nancial security for young households. In a 2006 survey                  struggling.
    of college graduates under 35, more than a third said it will
    take them more than 10 years to pay o their household’s                       New policies must work to maximize the potential of all
    education-related debt.17 Between student loans and credit                 young people by ensuring that higher education is a ord-
    card debt, today’s young adults must devote an increasing                  able for all who wish to pursue it, that our economy pro-
    share of their incomes to debt payments.                                   vides adequate wages and bene ts, and that hardworking
                                                                               young people can build assets and protect themselves from
       Stagnant incomes and high-cost debt have a ected hom-                   high-cost debt. As we think of these new policies, we need
    eownership among young people. Between 2006 and 2008,                      to ensure that young people from less advantaged nancial
    the total numbers of homeowners decreased slightly, but                    backgrounds and young people of color are able to complete
    declines were much larger for people under age 30—in 2008                  their educations, obtain decent jobs when they enter the
    there were 4.8 percent fewer homeowners among adults                       labor market, and save for their future. Although the reces-
    under 25 and 4.3 percent fewer among those 25 to 29 year                   sion provides an opportunity for bold reform, the window
    olds (see Chart 5).18                                                      for sweeping change will not remain open inde nitely.

    CHART 5: PERCENT CHANGE IN NUMBER OF
    HOMEOWNERS, 2006 2008
    0%



    -1%          -1.5%


    -2%



    -3%



    -4%
                                                           -4.5%
                                         -4.8%
    -5%
               United States          Younger than         25 to 29
                 Average               25 years old        years old

    Source: Project on Student Debt “Quick Facts about Student Debt”, August
    2009, projectonstudentdebt.org/ les/File/Debt_Facts_and_Sources.pdf.
Dēmos | Economic Policy Institute
      NOTES
      1.    Pew Research Center. “Once Again,      e Future Ain’t What It Used to Be,” May 2006.
      2.    Bureau of Labor Statistics of the U.S. Department of Labor: Unemployment rate.
      3.      e unemployment rate for workers ages 25 to 34 was 10.1 percent, which is just a little more than half a percentage point above the
            overall rate of 9.8 percent. Economic Policy Institute tabulations; Bureau of Labor Statistics.
      4.    Economic Policy Institute tabulations; Bureau of Labor Statistics.
      5.    Lisa Kahn. “ e Long-Term Labor Market Consequences of Graduating from College in a Bad Economy.” Working Paper, electronic
            version. Yale School of Management, 2008.
      6.       e 15-year e ect is an average 2.5 percent decline in wages for each extra percentage point in the unemployment rate. See Kahn
            (2008), p. 3.
      7.    Michael F. Lovenheim “Housing Wealth, Liquidity Constraints and College Enrollment” SIEPR, Stanford University October 2008;
            Oxford Economic Papers 59 (2007), 141–169, Oxford University Press 2006.
      8.    Berkner, He, Cataldi, Descriptive Summary of 1995-1996 Beginning Postsecondary Students: Six Years Later, U.S. Department of Edu-
            cation, National Center for Education Statistics, 2002.
      9.    U.S. Department of Education, Beginning Postsecondary Students- BPS:96/01 Data Analysis System, National Center for Education
            Statistics, 2002.
      10.   Viany Orozco and Nancy K. Cauthen. Work Less, Study More and Succeed: How Financial Supports Can Improve Postsecondary Suc-
            cess. Dēmos, September 2009.
      11.   Ibid.
      12.   Michael F. Lovenheim “Housing Wealth, Liquidity Constraints and College Enrollment” SIEPR, Stanford University October 2008;
            Oxford Economic Papers 59 (2007), 141–169, Oxford University Press 2006.
      13.   Project on Student Debt. “Quick Facts about Student Debt”, August 2009.
      14.   Jose Garcia and Tamara Draut.     e Plastic Safety Net: How Households are Coping in a Fragile Economy. Dēmos, July 2009.
      15.   Dēmos calculations from the 2008 National Household Survey of Credit Card Debt Among Low- and Middle-Income Households.
      16.   Ibid.
      17.   Anne Marie Chaker “Student Borrow More an Ever for College Heavy Debt Loads Mean Many Young People Can’t Live Life                 ey
            Expected” Wall Street Journal September 4, 2009.
      18.   U.S. Census Bureau; Housing Vacancies and Homeownership (CPS/HVS); Table 17. Homeownership Rates for the United States, by
            Age of Householder.




                                               For more info, visit: demos.org and epi.org

                                                              Contact:
       José García, Associate Director ofPolicy and     Economic Opportunity Program, Dēmos jgarcia@demos.org
                                               Research,                            - 
       Algernon Austin, Director Program on Race, Ethnicity and the Economy Economic Policy Institute - aaustin@epi.org
                        Press Contact: Timothy Rusch, Director of Communications - trusch@demos.org

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The Squeeze Is On

  • 1. Dēmos | Economic Policy Institute THE SQUEEZE IS ON: THE IMPACT OF THE RECESSION ON YOUNG PEOPLE Even before the recession, today’s young adults were on track to have the dubious distinction of being the rst genera- tion in a century not likely to end up better o than their parents. Stagnant wages, job insecurity, the decline in employer- sponsored health insurance and retirement bene ts, rapid increases in the cost of basic expenses, soaring debt, and mini- mal savings have diminished the prospects for opportunity and mobility. irty years in the making, government policy has failed to cushion the blow of these trends. Although the recession has a ected Americans of all ages, adults in their 20s and early 30s entered the downturn at a distinct disadvantage—trying to complete their educations and enter and get ahead in the job market in the midst of the deepest economic crisis since the Great Depression. e current recession jeopardizes not only their immediate prospects but also their long-term chances for economic security and success.1 EMPLOYMENT AND EARNINGS CHART 2: UNEMPLOYMENT RATE BY RACE FOR 16 24 YEAR OLDS, APRIL JUNE 2009 e recession has already had a devastating toll on young 30% workers, whose unemployment and underemployment rates are higher than for any other age group. e national 29.1% 25% unemployment rate for September 2009—9.8 percent—was the highest in 26 years,2 but this gure masks the dismal 20% labor market conditions faced by the youngest workers. 19.4% During the second quarter of 2009, the unemployment 15% 16% rate for workers under age 25 was 17.3 percent; in contrast, the unemployment rate for workers ages 45 to 54 was 6.9 10% percent (see Chart 1).3 CHART 1: UNEMPLOYMENT RATE BY AGE, APRIL JUNE 2009 5% 20% 0% White Hispanic African American 17.3% 15% Source: Bureau of Labor Statistics of the U.S. Department of Labor: Unemployment rate, unadjusted. workers ages 25 to 34 was 17.1 percent and 13.7 percent for 10% 10.1% workers ages 35 to 44.4 7.9% Research has shown that entering the labor force during 6.9% 6.7% a recession can suppress initial wages and have long-term 5% consequences for earnings, even among college graduates. A recent study shows that in their rst year out of college, 0% white men entering the workforce in a bad economy earn 16 to 24 25 to 34 35 to 44 45 to 54 55 and over 6 to 8 percent less for each additional percentage point in Source: Bureau of Labor Statistics of the U.S. Department of Labor: the national unemployment rate.5 Although the magnitude Unemployment rate, seasonally adjusted. of this e ect decreases over time, the impact is long term: een years a er college graduation, wages are still lower Young people of color and those without college degrees for those who entered the labor market when unemploy- have been the hardest hit by unemployment. Young Afri- ment was high.6 Given the depth of unemployment among can Americans face the highest unemployment rate, at 29.1 young people, the wage suppression e ect of this recession percent for the second quarter of 2009 (see Chart 2). could potentially have lifelong consequences for a genera- tion of workers. e situation facing young jobseekers is even more grim when taking underemployment into account—the “under- POST SECONDARY EDUCATION employed” include workers who want full-time work but can nd only part-time hours, people who have given up Completing a credential beyond high school—whether looking for work, and the unemployed. e overall rate of a professional certi cate or an associate’s or bachelor’s underemployment doubled between 2007 and 2009, but the degree—is the best way for young people to increase their gures are highest for young workers. During the second earnings and long-term economic prospects. Yet recessions quarter of 2009, young workers under 25 had an under- have di erent e ects on college enrollment depending on employment rate of 31.9 percent. Underemployment for income—young people with greater nancial means are
  • 2. Dēmos | Economic Policy Institute more likely to enroll in school when unemploy- CHART 3: ment is high. But young people from low- and ATTENDANCE STATUS OF TWO AND FOUR YEAR UNDERGRADUATES moderate-income families with few assets are 100% less likely to enroll in school when economic conditions are tough: they are more likely to feel pressure to work and less able to take on % Full-time, student debt.7 80% Public 4-year Long before the recession, college gradu- ation rates had stagnated—nearly half of 60% % Part-time, students who enroll in college will drop out Public 2-year before earning a degree. Even among the students most likely to succeed—those who % Full-time, begin college as full-time students at four-year 40% Public 2-year institutions—only three out of ve complete a bachelor’s degree within six years.8 Among young students (under age 24) enrolled at 20% % Part-time, Public 4-year community colleges, fewer than two out of ve complete some kind of credential within six years.9 0% 1970 1975 1980 1985 1990 1995 2000 2005 Although there are many reasons for what Source: U.S. Department of Education, National Center for Education Statistics, “The Condition analysts refer to as a college drop-out crisis, of Education, 2009.” Indicator 10, Table A-10-2. nancial challenges are paramount. College costs have risen dramatically over the last 25 nd su cient employment to support themselves and pay years, while nancial aid policies have increasingly aban- for school, yet they are ill-equipped to make up the di er- doned students with the greatest nancial need, forcing ence by taking on debt in the form of student loans.12 students and their families to pay more out of pocket and rely more heavily on loans. DEBTS AND ASSETS Seldom noted is that low- and moderate-income students Young adults entering the labor force tend to have lim- are working longer hours and more of them are enrolling ited savings and other nancial assets. e recession—with only part time, putting them at risk for dropping out. Re- high unemployment, underemployment, lower salaries search clearly indicates that full-time enrollment and part- for entry-level workers and barriers to college comple- time employment of less than 15 hours per week provide tion—hampers the ability of young people to build assets the optimal situation for young students to concentrate on now and in the future. As more young workers enter the their studies and nish their degree. 10 workforce with debt (such as credit card debt, student loans, and car loans), their capacity to save for big-ticket items In 1970, 14 percent of full-time college students worked such as a home is diminished. Falling behind in debt pay- more than part time (20 hours per week or more). More ments threatens their credit scores, jeopardizing future asset than 30 years later, that percentage had doubled. As student building. employment and work hours have increased, so have rates of part-time enrollment—a trend that has disproportion- e latest data show that 67 percent of graduating stu- ately a ected young community college students. In 2007- dents at four-year institutions le college with debt. In 2008, 08, nearly 60 percent of young community college students the average debt of students graduating with loans was enrolled part time compared to just under 20 percent of $23,200, an increase of 24 percent over 2004 when student students at four-year institutions (see Chart 3).11 debt averaged $18,650.13 For students with inadequate nancial support, employ- According to a survey on household debt conducted ment is an indispensible strategy for attending school. But by Dēmos last year, low- and middle-income Americans when long work hours lead students to enroll only part under age 35 with credit card debt averaged about $9,000 in time, the risk increases that they will drop out and not com- such debt. Over half (55 percent) of respondents under 35 14 plete a degree. Even if they are able to stay in school, enroll- reported using credit cards to pay for basic living expenses ing part time extends the time it takes to complete a degree. in the past year because they did not have enough cash— whether from earnings or savings—to cover these expens- In short, while the high unemployment of a recession es.15 Far from being a rare occurrence, those who reported may encourage young people who are nancially better o using credit cards for basic expenses did so on average for to return to school, lower-income young people are con- ve months out of the year.16 fronted with a double bind—they may nd it di cult to
  • 3. Dēmos | Economic Policy Institute CHART 4: AVERAGE DEBT AMONG GRADUATING SENIORS CONCLUSION WITH STUDENT LOANS, 2004 AND 2008 A quick recovery from the current recession is important ! $25,000 for young people not only for their immediate economic livelihood but also for their ability to build a sound eco- $23,200 nomic foundation for the future. At the moment, young $20,000 adults are facing high unemployment and underemploy- $18,650 ment, wages suppressed by the recession, increased barriers to paying for school, and high-cost debt—all of which have $15,000 ripple e ects and potential long-term economic conse- quences. Not only does the recession threaten the economic $10,000 well-being of today’s young adults, their economic insecu- rity threatens us all. $5,000 Yet even if the recession were to end tomorrow, young people face enormous economic challenges as they seek to complete their educations, join the labor market, start fami- $0 2004 2008 lies, build assets and plan for the future. Recent policies to end deceptive and abusive credit card practices and propos- Source: Project on Student Debt “Quick Facts about Student Debt”, August 2009, projectonstudentdebt.org/ les/File/Debt_Facts_and_Sources.pdf. als to reform health care and invest in higher education will help. But it will take much bolder and more far-reaching policy reforms to redress the decades of declining economic Onerous levels of debt pose a serious impediment to opportunity and mobility that have le younger Americans nancial security for young households. In a 2006 survey struggling. of college graduates under 35, more than a third said it will take them more than 10 years to pay o their household’s New policies must work to maximize the potential of all education-related debt.17 Between student loans and credit young people by ensuring that higher education is a ord- card debt, today’s young adults must devote an increasing able for all who wish to pursue it, that our economy pro- share of their incomes to debt payments. vides adequate wages and bene ts, and that hardworking young people can build assets and protect themselves from Stagnant incomes and high-cost debt have a ected hom- high-cost debt. As we think of these new policies, we need eownership among young people. Between 2006 and 2008, to ensure that young people from less advantaged nancial the total numbers of homeowners decreased slightly, but backgrounds and young people of color are able to complete declines were much larger for people under age 30—in 2008 their educations, obtain decent jobs when they enter the there were 4.8 percent fewer homeowners among adults labor market, and save for their future. Although the reces- under 25 and 4.3 percent fewer among those 25 to 29 year sion provides an opportunity for bold reform, the window olds (see Chart 5).18 for sweeping change will not remain open inde nitely. CHART 5: PERCENT CHANGE IN NUMBER OF HOMEOWNERS, 2006 2008 0% -1% -1.5% -2% -3% -4% -4.5% -4.8% -5% United States Younger than 25 to 29 Average 25 years old years old Source: Project on Student Debt “Quick Facts about Student Debt”, August 2009, projectonstudentdebt.org/ les/File/Debt_Facts_and_Sources.pdf.
  • 4. Dēmos | Economic Policy Institute NOTES 1. Pew Research Center. “Once Again, e Future Ain’t What It Used to Be,” May 2006. 2. Bureau of Labor Statistics of the U.S. Department of Labor: Unemployment rate. 3. e unemployment rate for workers ages 25 to 34 was 10.1 percent, which is just a little more than half a percentage point above the overall rate of 9.8 percent. Economic Policy Institute tabulations; Bureau of Labor Statistics. 4. Economic Policy Institute tabulations; Bureau of Labor Statistics. 5. Lisa Kahn. “ e Long-Term Labor Market Consequences of Graduating from College in a Bad Economy.” Working Paper, electronic version. Yale School of Management, 2008. 6. e 15-year e ect is an average 2.5 percent decline in wages for each extra percentage point in the unemployment rate. See Kahn (2008), p. 3. 7. Michael F. Lovenheim “Housing Wealth, Liquidity Constraints and College Enrollment” SIEPR, Stanford University October 2008; Oxford Economic Papers 59 (2007), 141–169, Oxford University Press 2006. 8. Berkner, He, Cataldi, Descriptive Summary of 1995-1996 Beginning Postsecondary Students: Six Years Later, U.S. Department of Edu- cation, National Center for Education Statistics, 2002. 9. U.S. Department of Education, Beginning Postsecondary Students- BPS:96/01 Data Analysis System, National Center for Education Statistics, 2002. 10. Viany Orozco and Nancy K. Cauthen. Work Less, Study More and Succeed: How Financial Supports Can Improve Postsecondary Suc- cess. Dēmos, September 2009. 11. Ibid. 12. Michael F. Lovenheim “Housing Wealth, Liquidity Constraints and College Enrollment” SIEPR, Stanford University October 2008; Oxford Economic Papers 59 (2007), 141–169, Oxford University Press 2006. 13. Project on Student Debt. “Quick Facts about Student Debt”, August 2009. 14. Jose Garcia and Tamara Draut. e Plastic Safety Net: How Households are Coping in a Fragile Economy. Dēmos, July 2009. 15. Dēmos calculations from the 2008 National Household Survey of Credit Card Debt Among Low- and Middle-Income Households. 16. Ibid. 17. Anne Marie Chaker “Student Borrow More an Ever for College Heavy Debt Loads Mean Many Young People Can’t Live Life ey Expected” Wall Street Journal September 4, 2009. 18. U.S. Census Bureau; Housing Vacancies and Homeownership (CPS/HVS); Table 17. Homeownership Rates for the United States, by Age of Householder. For more info, visit: demos.org and epi.org    Contact: José García, Associate Director ofPolicy and     Economic Opportunity Program, Dēmos jgarcia@demos.org     Research,    -  Algernon Austin, Director Program on Race, Ethnicity and the Economy Economic Policy Institute - aaustin@epi.org Press Contact: Timothy Rusch, Director of Communications - trusch@demos.org