This report examines the topic of income-driven repayment of student loans. The authors, Sandy Baum and Jason Delisle, provide an analytical underpinning of the topic and discuss the history of income-driven repayment, key trends and statistics, and potential reforms. The report concludes that while IDR has been successful in reducing the number of defaulters, it has also led to a decline in the amount of money repaid over time. The authors recommend that policymakers consider alternative approaches to student loan repayment, such as income-based repayment or loan forgiveness, to address these issues.
