Hello! Money is on our minds in this mid-January edition of the Weekly Roundup.
Student loan default is a "crisis," report says
Almost 40 percent of students who entered college in the fall of 2003 may default on their student loans by 2023. That is the conclusion of the Brookings Institution, which analyzed 20 years of federal data for two groups of student borrowers. Previously published data from the Department of Education looked at default rates just three to five years after borrowing. The new, long-term analysis found that for-profit college students and African-American college students had the highest rates of default. For black students who attended for-profits starting in the 1990s, two out of three eventually defaulted on their loans.
How tax changes could affect state and school funding
The tax overhaul just passed by Congress makes big changes to 529 college savings plans, NPR's Ed team reports. Namely, it now lets families use the money in these accounts — money that is allowed to grow tax-free — to pay for tuition not only at colleges but also at K-12 private schools.