Featured Research

from universities, journals, and other organizations

Falling Home Ownership, Equity, Affect College Enrollment

Date:
November 18, 2008
Source:
University of Michigan
Summary:
Sagging college enrollments may be the next symptom of the sub-prime mortgage mess, according to an economist.

Sagging college enrollments may be the next symptom of the sub-prime mortgage mess, according to a University of Michigan economist.

Related Articles


“Our analysis shows a clear connection between parents’ home ownership and home equity, and adult children’s college attendance,” said U-M researcher Frank Stafford, who directs the Panel Study of Income Dynamics at the U-M Institute for Social Research (ISR).

For the analysis, Stafford and colleagues examined data from a nationally representative sample of young adults ages 18 to 20 in 2005. “This was during the happy days of the economy,” Stafford said. “Mortgages were easy to obtain and rapidly rising home equity led a lot of parents to feel that it was possible to help their children with college expenses.”

Stafford found that parental home ownership was a major predictor of children’s college enrollment among the 745 families sampled, even after controlling for parental education. “About 64 percent of the children of home-owners were enrolled in college,” he said, “compared with about 33 percent of renters.”

The amount of home equity among parents who owned their own homes also clearly predicted adult children’s college enrollment. About 51 percent of children whose parents had less than $25,000 of home equity enrolled in college, compared with 88 percent of those whose parents had $350,000 or more of home equity.

Parental finances are just one of the factors likely to affect college enrollments, notes Stafford. Data from the ISR study confirm that personal characteristics also play a major role. “Young adults’ self-concepts and their self-discipline—in terms of cutting back on hours spent watching television in high school—are also strongly linked to college attendance,” he says.

For example, teens who went on to college watched television about 45 minutes less on weekdays than teens who did not attend college.

The analyses are part of a proposed new project on the transition to adulthood. “The years between 18 and 28 have become a distinct period of life between adolescence and adulthood,” Stafford said. “Even before the current economic problems reached critical proportions, young people were taking longer than in the past to establish themselves and to strike out on their own.

“Some evidence suggests that this period is particularly hard for minority and poor youth, but we need more information about the personal and social characteristics that facilitate or impede progress through this period into productive adulthood,” he said. “We currently have a very limited understanding of how American youth actually pass through this period, and we know almost nothing about how this passage is related to the youths’ families of origin.”


Story Source:

The above story is based on materials provided by University of Michigan. Note: Materials may be edited for content and length.


Cite This Page:

University of Michigan. "Falling Home Ownership, Equity, Affect College Enrollment." ScienceDaily. ScienceDaily, 18 November 2008. <www.sciencedaily.com/releases/2008/11/081118170625.htm>.
University of Michigan. (2008, November 18). Falling Home Ownership, Equity, Affect College Enrollment. ScienceDaily. Retrieved March 31, 2015 from www.sciencedaily.com/releases/2008/11/081118170625.htm
University of Michigan. "Falling Home Ownership, Equity, Affect College Enrollment." ScienceDaily. www.sciencedaily.com/releases/2008/11/081118170625.htm (accessed March 31, 2015).

Share This


More From ScienceDaily



More Science & Society News

Tuesday, March 31, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

The Future Of Japanese Whaling: Heritage Vs. Conservation

The Future Of Japanese Whaling: Heritage Vs. Conservation

Newsy (Mar. 30, 2015) — In 2014, the International Court of Justice ruled Japan could no longer engage in whaling in the Antarctic, but Japan has plans to return this year. Video provided by Newsy
Powered by NewsLook.com
Soda, Salt and Sugar: The Next Generation of Taxes

Soda, Salt and Sugar: The Next Generation of Taxes

Washington Post (Mar. 30, 2015) — Denisa Livingston, a health advocate for the Dinι Community Advocacy Alliance, and the Post&apos;s Abby Phillip discuss efforts around the country to make unhealthy food choices hurt your wallet as much as your waistline. Video provided by Washington Post
Powered by NewsLook.com
UnitedHealth Buys Catamaran

UnitedHealth Buys Catamaran

Reuters - Business Video Online (Mar. 30, 2015) — The $12.8 billion merger will combine the U.S.&apos; third and fourth largest pharmacy benefit managers. Analysts say smaller PBMs could also merge. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
Lights out for Earth Hour

Lights out for Earth Hour

Reuters - News Video Online (Mar. 29, 2015) — Landmarks in cities around the globe turn off their lights to mark Earth Hour. Paul Chapman reports. Video provided by Reuters
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins