tailieunhanh - A REPORT PREPARED BY THE DEPARTMENT OF THE TREASURY WITH THE DEPARTMENT OF EDUCATION

Finland experienced an exceptionally deep economic crisis during the first half of the 1990s. Within four years, output was reduced by more than 10% and the unemployment rate quadrupled to almost 17%. External shocks (the collapse of trade with the former Soviet Union in 1991, but also a sharp downturn in the OECD area), combined with a domestic banking crisis, led to a collapse of consumption and investment spending. Overcoming the crisis required drastic measures to improve competitiveness and to consolidate public finances -- at the same time as very costly measures were needed to revive the banking sector | The Economics of Higher Education A Report Prepared by the department of the Treasury with the department of Education December 2012 We can t allow higher education to be a luxury in this country. It s an economic imperative that every family in America has to be able to afford. - President Barack Obama February 27 2012 Executive Summary Higher education is a critical mechanism for socioeconomic advancement among aspiring individuals and an important driver of economic mobility in our society. Moreover a well-educated workforce is vital to our nation s future economic growth. American companies and businesses require a highly skilled workforce to meet the demands of today s increasingly competitive global economy. Higher education is provided through a complex public-private market with many different individuals and institutions participating. While postsecondary education has become increasingly important there have also been growing concerns about the cost and affordability of higher education. This report discusses the current state of higher education with a brief high-level overview of the market and a more detailed discussion and analysis of the financial aid system. We also discuss the important changes the President has made to make higher education more accessible and affordable. Our key findings are The economic returns to higher education remain high and provide a pathway for individual economic mobility Public colleges educate the vast majority of the nation s students enrolled in institutions of higher education but private for-profit schools are growing the most rapidly Historically society provided a significant subsidy to young people through the widespread availability of inexpensive public higher education. However over the past several decades there has been a substantial shift in the overall funding of higher education from state assistance in the forms of grants and subsidies to increased tuition borne by students The Obama Administration has