Should All Student Loan Payments Be Income-Driven? Trade-Offs and Challenges. White Paper

This white paper analyzes the potential effects of requiring income-driven repayment for all federal loans as well as relying on paycheck withholding for loan payments, with particular attention to the implications for low-income students and families. The Institute for College Access & Success (TICAS) also examines the relevance and evolution of mandatory IDR ["income-driven repayment"] systems in Australia and the United Kingdom, and the paper includes specific recommendations to streamline and improve student loan repayment options in the United States. Two appendices are included: (1) Citation List of Figure 2: "Key Comparisons of IDR Systems and Context: U.S., U.K., and Australia"; and (2) Borrower Example Details.