Income-Driven Repayment Plans for Student Loans: Budgetary Costs and Policy Options

Congressional Budget Office

No 55968, Reports from Congressional Budget Office

Abstract: In December 2017, nearly half the volume of direct loans currently in repayment was being repaid through income-driven plans. Such plans differ from fixed monthly payment plans by limiting required payments to a percentage of borrowers’ income and allowing for loan forgiveness after 20 or 25 years.CBO examines how enrollment in income-driven plans has changed over time and how those plans will affect the federal budget. CBO also assesses the costs of two broad sets of options that would change the availability of such plans or change how borrowers’ payments are determined.

JEL-codes: H52 I22 I28 (search for similar items in EconPapers)
Date: 2020-02-12
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Citations: View citations in EconPapers (5)

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