Crushed

• Reviews the growth and development of the American university system, including its objectives, successes, and failures
• Explains university endowments, why these pools of capital are so large, and how they can be used more efficiently to ensure students graduate on time with valuable degrees
• Details the growth of college tuition, explains how tuition and other sources of income are used, and describes the perverse incentives that have led to unchecked tuition inflation
• Provides an in-depth analysis on the value of a college degree and describes how that value has changed over time
• Explains how the student loan industry grew to its current size and provides an explanation for how and why consumer protections were reduced
• Describes how the current tertiary educational system harms minority students and contributes to the interracial wealth gap
• Details legislative solutions to reducing debt, aligning incentives, restoring bankruptcy protections, and reducing the cost of a college education without reducing its value

David E. Linton is an author, economist, and former Adjunct Professor at the University of Southern California’s Marshall School of Business, where he taught Investment Analysis and Portfolio Management. His first book, Foundations of Investment Management, has become a mainstay among aspiring professionals who want to bridge the gap between an academic understanding and the practical application of investment management strategies. Mr. Linton is currently a Senior Portfolio Manager at a leading financial technology firm where he shares responsibility for the management of both corporate and customer cash assets. Previously, he was the Director of Portfolio Construction and Manager Research at Pacific Life Fund Advisors LLC. Prior to this, Mr. Linton was a Vice President and Portfolio Manager at PIMCO. Mr. Linton is a CFA^® charterholder with a BS in Business Administration from the University of Southern California and an MBA from the University of Chicago Booth School of Business.

Table of Contents Introduction Foreword by John Katzman About the Author   Chapter 1: A Brief History of the Growth of the American University System Why Review History? Colonial Period through The Civil War The Civil War through WWII Post WWII through the 1970s 1970s through the 2020s: Growth of Community, Public, and Private Colleges Foundational Questions and Answers Figure Citations Chapter 2: Why Is College so Damn Expensive? Rising Demand for Advanced Degrees Universities’ Response to a Surge in Demand The Price of a College Degree Why Has Tuition Risen? The Academic Explanations Why Has Tuition Risen? The Practical Explanations Recent Developments Conclusion Chapter 3: The Value of a Degree: Why Go to College? Benefits of a College Degree to the Individual Societal Benefits Risks and Harms of Earning a College Degree Conclusion Appendix 3.1: Employment and Salary Data, Sorted by Major Appendix 3.2: Employment and Salary Data, Sorted by Median Wage Mid-Career (High to Low) Chapter 4: The University Endowment: What Is It and Why Should We Care? Endowment History and Objectives How Are Endowments Managed? Endowment Critiques Conclusion Figure Sources for Figures 4.1 and 4.2   Chapter 5: The Student Loan Industry: How Debt Grew and Consumer Protections Shrank How Did We Get Here? Where Are We Now? Laws, Consumer Protections, and Bankruptcy Conclusion Chapter 6: How Student Loans Have Impaired a Generation The Benefits of Student Loan Availability Ways in Which Today's Young Adults Have Been Impaired The Cost to the Taxpayer Conclusion Chapter 7: Disparate Outcomes: How Postsecondary Institutions Harm Minority Communities Starting Conditions Black Students and Enrollment Decisions The Results for Black Students Policy Solutions: Benefits and Shortcomings Conclusion Chapter 8: Policy Solutions: How We Fix This Mess Universities Endowments Lenders (Banks and the Government) and Borrowers (Students and Their Parents) Conclusion Chapter 9: What Every Parent, Student, and Prospective Student Should Know Question 1: Should Someone Continue with Postsecondary Education? Question 2: When Should Someone Continue with Their Postsecondary Education? Question 3: How Do You Choose a College? Question 4: What Should Someone Who Has Assumed Debt Do (and Not Do)? Conclusion and Summary of Thoughts CITATIONS

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“This book is an absolute eye-opener and something the parent of every aspiring college student should read. Not only does Crushed break down the extent of the problem, but it also explains how we got into this mess and what we should do about it. Thoroughly researched and easy to read, this book will forever change the discussion around the current student debt crisis, its causes, and its solutions.”
—Jeff Sandefer, Entrepreneur and Former University of Texas Professor, Co-founder of the Acton School of Business and Acton Academy

“Nobel prize-winning economist Milton Friedman is credited with saying that ‘the government solution to a problem is usually as bad as the problem.’ Linton demonstrates this adage to be true by detailing how government intervention has led to the current student debt crisis, and more importantly, Linton explains how thoughtful and targeted policies can correct the situation. I highly recommend students, parents, and policymakers read this manuscript. Crushed is brilliantly insightful and timely.”

—Constantine Yannelis, Associate Professor of Finance and FMC Faculty Scholar, University of Chicago Booth School of Business

 

“An outsider’s perspective is often invaluable. Linton is not from within higher education. He is a curious and thoughtful economist who took on the challenge of understanding the problem of student debt from the perspective of a parent who will be writing tuition checks for several children in the near future. He asked the question: Why do they need to be so large? What resulted was a thoroughly researched and insightful analysis that will be invaluable to policymakers, parents, and students.”
—Stephen G. Moyer, Former Trustee Grinnell College, and best-selling author of Distressed Debt Analysis

“Crushed takes an evidence-based approach to one of the most pressing educational issues of the modern era—an issue that impacts everyone: student debt.”
—Foreword Reviews

“This exceptional title will likely appeal to readers interested in education, social science, and the elimination of student-loan debt.”
—Library Journal