Student Debt and Higher Education Finance

These flashcards cover key terms and concepts related to student debt and higher education finance, facilitating review and understanding for the upcoming exam.

Human Capital Investment

The concept that investing in education can enhance an individual's productivity by building skills and knowledge.

Baumol Cost Disease

A phenomenon where wages in labor-intensive sectors rise due to wage increases in high-productivity sectors, leading to higher costs in these service sectors without increased output.

Pell Grants

Need-based federal financial aid for undergraduate students with exceptional financial need that does not need to be repaid.

Sticker Price

The published tuition and fees for a college before any grants or scholarships are applied.

Net Price

The cost of attending college after factoring in grant aid, calculated as the sticker price minus grants and scholarships.

Merit Aid

Financial aid given to students based on academic achievements, often used strategically to attract students with strong profiles.

Need-Based Aid

Financial assistance targeting students based on their financial circumstances, aiming to promote equity in access to education.

Completion Risk

The uncertainty regarding whether a student will finish their degree program, which can affect borrowing and financial planning.

Public Spillovers

The benefits to society from increased education levels, such as improved productivity, civic participation, and lower crime rates.

Consumption Smoothing

The practice of borrowing to maintain a stable consumption level despite fluctuations in income.