Fixing Income-Driven Repayment for Federal Student Loans
How IDR Works and Enrollment Trends
March 23, 2021
Author(s): Jason D. Delisle and Preston Cooper
Organization(s): American Enterprise Institute
The income-driven repayment (IDR) plan allows all federal student loan borrowers to limit payments to a small share of their incomes and provides loan forgiveness benefits. This report argues that instead of providing mass loan forgiveness, policymakers should strengthen IDR for vulnerable borrowers while reining in excessive benefits for borrowers with graduate school loans.