UPromise, Laura Tyson and Joseph Stiglitz Release New Study On How Paying for College Impacts Family Finances.Business Editors BROOKLINE, Mass.--(BUSINESS WIRE)--Nov. 16, 2000 Findings Illustrate Potential Crisis for Families that Fail to Save for College and Retirement UPromise, Inc., the college savings network, today released a new economic research study, co-authored by four economists including Dr. Laura Tyson Laura D'Andrea Tyson (b. June 28, 1947, New Jersey) is an American economist and former Chair of the President's Council of Economic Advisers. She also served as Director of the National Economic Council. and Dr. Joseph Stiglitz, both former chairmen of the President's Council of Economic Advisers, on the impact of paying for college on family finances. The groundbreaking study goes beyond researching rising tuition rates and examines the dramatic effect college costs have on consumers' quality of life, standard of living, and retirement security. The study combines a unique model of a family's income and savings behavior, along with projected college tuitions, retirement needs, and other factors, to identify a critical "savings gap" for parents currently trying to meet the dual challenges of paying for their children's college and saving for their own retirement. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the study, even a family with an income of $60,000 and typical savings faces a difficult situation: to send two children to private universities in 15 years and have a secure retirement, they would have to put aside more than one year's income (nearly $67,000) today. If they fail to accelerate their savings, this family could be forced to take drastic steps, such as taking a second mortgage worth 60 percent of their home's value or cutting their non-Social Security retirement income by 96 percent. "In the New Economy, we know that `what you earn depends upon what you learn' - that's why a college education is so important today," said Dr. Laura Tyson, Dean of the Haas School of Business at The University of California, Berkeley The University of California, Berkeley is a public research university located in Berkeley, California, United States. Commonly referred to as UC Berkeley, Berkeley and Cal , former director of the President's National Economic Council, and co-author of the study. "This study provides detailed examples of how families are meeting the twin goals of sending their children to college and preparing for their own retirement." The study notes that if current trends persist, college costs will more than double in the next twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. . Despite this fact, nearly two-thirds of parents with children under 18 failed to save a single dollar - for any purpose - in 1998. The study leverages a 20 variable model developed by Sebago Associates, Inc., an international economic consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , to provide highly specific estimates of how seven hypothetical families will meet the challenges of paying for their children's college and preparing for their own retirement. These seven hypothetical families have varying income levels, family size, and educational goals. The study outlines how each family must change its existing behavior to meet the challenge of paying for college - and projects what could happen if they fail to prepare adequately. It also includes a valuable, state-by-state breakdown of college costs and tuition trends. "Families are clearly not saving enough for either their children's college or for their own retirement," said Dr. Joseph Stiglitz, Professor of Economics at Stanford University Stanford University, at Stanford, Calif.; coeducational; chartered 1885, opened 1891 as Leland Stanford Junior Univ. (still the legal name). The original campus was designed by Frederick Law Olmsted. David Starr Jordan was its first president. and co-author of the study. "By looking at seven hypothetical families, we get a realistic look at how this failure to save for college has a dramatic impact on families with both low and high incomes." "UPromise commissioned this important, independent study to help educate families about the importance of saving early to afford rising college costs without jeopardizing their other savings goals, like retirement," said Michael Bronner, founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of UPromise. The study was also authored by Dr. Peter Orszag and Jonathan Orszag, both principals at Sebago Associates, Inc.. In addition to their academic positions, Dr. Stiglitz and Dr. Tyson are both associated with Sebago Associates; Dr. Stiglitz is the Senior Director and Chairman of Sebago Associates' Advisory Committee, and Dr. Tyson is a member of the firm's Advisory Committee. To view a copy of the study, please visit www.upromise.com or call 617.582.1400. About Laura Tyson Laura D'Andrea Tyson is Dean of the Haas School of Business at the University of California at Berkeley (body, education) University of California at Berkeley - (UCB) See also Berzerkley, BSD. http://berkeley.edu/. Note to British and Commonwealth readers: that's /berk'lee/, not /bark'lee/ as in British Received Pronunciation. . Dr. Tyson served in the Clinton Administration from January 1993 through December 1996. Between February 1995 and December 1996 she served as the President's National Economic Adviser and was the highest ranking woman in the White House. Previously, she was Chairman of the White House Council of Economic Advisers, the first woman to hold that post. In that capacity, she was responsible for providing the President and his National Economic Council with advice and analysis on all economic policy matters, for preparing the Administration's economic forecasts, and for the annual Economic Report of the President The Economic Report of the President is a document published by the President of the United States' Council of Economic Advisers (CEA). Released in February of each year, the report reviews what economic activity was of impact in the previous year, outlines the economic goals for . Dr. Tyson has published several books and articles on the economies of Central Europe and their transition to market systems. Dr. Tyson has a summa cum laude sum·ma cum lau·de adv. & adj. With the greatest honor. Used to express the highest academic distinction: graduated summa cum laude; a summa cum laude graduate. undergraduate degree from Smith College (1969) and a Ph.D. in economics from the Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, (1974). About Joseph Stiglitz Dr. Joseph Stiglitz is Professor of Economics at Stanford University, and also serves as Senior Director and Chairman of the Advisory Committee at Sebago Associates, Inc. Previously, Dr. Stiglitz served as the World Bank's Chief Economist and Senior Vice President for Development Economics. Before joining the Bank, he was the Chairman of the President's Council of Economic Advisers. He has also served as a professor of economics at Princeton, Yale, and All Souls College, Oxford. As an academic, Dr. Stiglitz helped create a new branch of economics - "The Economics of Information" - which has received widespread application throughout economics. In the late 1970s and early 1980s, Dr. Stiglitz helped revive interest in the economics of technical change and other factors that contribute to long-run increases in productivity and living standards. Dr. Stiglitz is also a leading scholar of the economics of the public sector. The Economist magazine recently stated that Dr. Stiglitz's "brilliant work on the economics of information assures him a Nobel Prize Nobel Prize, award given for outstanding achievement in physics, chemistry, physiology or medicine, peace, or literature. The awards were established by the will of Alfred Nobel, who left a fund to provide annual prizes in the five areas listed above. " (12/18/99). In 1979, the American Economic Association The American Economic Association, or AEA, is the oldest and most important professional organization in the field of economics. It was established in 1885 by religious and social reformer Richard T. awarded Mr. Stiglitz its biennial John Bates Clark "John B. Clark" redirects here. For the American congressmen, see John Bullock Clark and John Bullock Clark, Jr.. John Bates Clark (26 January 1847 – 21 March 1938) was an American neo-classical economist. Award, given to the economist under 40 who has made the most significant contributions to economics. About Peter Orszag and Jonathan Orszag Dr. Peter Orszag is President of Sebago Associates, Inc., and is a lecturer in economics at the University of California, Berkeley. Prior to founding Sebago Associates, Dr. Orszag served as Special Assistant to the President for Economic Policy at the White House. Jonathan Orszag is the Managing Director of Sebago Associates. Prior to joining Sebago Associates, Mr. Orszag served as the Assistant to the U.S. Secretary of Commerce and Director of the Office of Policy and Strategic Planning. Sebago Associates is an international economic consulting firm. It provides advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal to corporations, non-profit entities, and the public sector at the state, national, and international levels. More information about the firm can be found on the company's web site at www.sbgo.com. About UPromise UPromise is a savings network committed to making college more affordable for families. In partnership with America's most trusted companies, UPromise helps families accelerate their college savings. An affiliated non-profit entity, the UPromise Education Foundation, helps lower-income students and their families afford a college education. The Foundation is funded in part by UPromise's founder and CEO, Michael Bronner, president and COO Jeff Bussgang, UPromise management, and investors, who have contributed a substantial portion of their equity in the company. UPromise has raised approximately $90 million in investment capital from General Atlantic Partners, Hellman & Friedman, Greylock, Kleiner Perkins Caufield & Byers, Charles River Ventures, General Catalyst and The Goldman Sachs Foundation. UPromise began operations in January 2000 and is based in Brookline, Mass. The UPromise service will be nationally available early in 2001. For more information, visit www.upromise.com or call 617-582-1400. The UPromise Advisory Board is comprised of leaders in education, government and business, including: Kim Clark, Dean, Harvard Business School Harvard Business School, officially named the Harvard Business School: George F. Baker Foundation, and also known as HBS, is one of the graduate schools of Harvard University. ; Johnnetta Cole, President emeritus, Spelman College; George Fisher, Chairman, Kodak; Thomas Kean, President of Drew University and former Governor of New Jersey; Amos Hostetter, Jr., former chairman, Continental Cablevision (now AT&T Broadband); Donald Kennedy, Professor and former President, Stanford University; Madeline Kunin, Former Governor of Vermont The Governor of Vermont is the executive magistrate of the U.S. state of Vermont. The governor is elected biennialy in even numbered years by direct voting for a term of two years. Vermont is one of only two U.S. and former Deputy Secretary of Education; David Rockefeller, Jr., Rockefeller & Co., Inc.; Donald Stewart, Former President, The College Board; Dr. Clifton Wharton, Former Chairman and CEO, TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund and former President, Michigan State University Michigan State University, at East Lansing; land-grant and state supported; coeducational; chartered 1855. It opened in 1857 as Michigan Agricultural College, the first state agricultural college. ; John C. Whitehead John Cunningham Whitehead (b. April 2 1922), is currently the chairman of the World Trade Center Memorial Foundation (WTC Memorial Foundation), and former chairman of the Lower Manhattan Development Corporation until he resigned in May of 2006. , Former Chairman, Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. and former Co-Chairman, Goldman, Sachs & Co. |
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