Student Loans as a Pressure on U.S. Higher Education

The University Under Pressure

ISBN: 978-1-78560-831-5, eISBN: 978-1-78560-830-8

ISSN: 0733-558X

Publication date: 5 February 2016

Abstract

The United States has been at the forefront of a global shift away from direct state funding of higher education and toward student loans, and student debt has become an issue of growing social concern. Why did student loans expand so much in the United States in the 1990s and 2000s? And how does organization theory suggest their expansion, and the growth of federal student aid more generally, might affect higher education as a field? In the 1960s and 1970s, policy actors worked to solve what was then a central problem around student loans: banks’ disinterest in lending to students. They did this so well that by 1990, a new field of financial aid policy emerged, in which all major actors had an interest in expanding loans. This, along with a favorable environment outside the field, set the stage for two decades of rapid growth. Organization theory suggests two likely consequences of this expansion of federal student loans and financial aid more generally. First, while (public) colleges have become less dependent on state governments and more dependent on tuition, the expansion of aid means colleges are simultaneously becoming more dependent on the federal government, which should make them more susceptible to federal demands for accountability. Second, the expansion of federal student aid should encourage the spread of forms and practices grounded in a logic focused on students’ financial value to the organization, such as publicly traded for-profit colleges and enrollment management practices.

Keywords

Citation

Elizabeth Popp Berman and Abby Stivers (2016). 'Student Loans as a Pressure on U.S. Higher Education', The University Under Pressure (Research in the Sociology of Organizations, Volume 46). Emerald Group Publishing Limited, pp. 129-160

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DOI

: https://doi.org/10.1108/S0733-558X20160000046005

Publisher

:

Emerald Group Publishing Limited

Copyright © 2016 Emerald Group Publishing Limited

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