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

Congressional Budget Office

Introduced as a way to make student loan repayment more manageable, income-driven plans limit payments to a percentage of borrowers’ income and allow for loan forgiveness after 20 or 25 years. The Congressional Budget Office examined how income-driven plans differ from plans that require fixed monthly payments, how enrollment in income-driven plans has changed over
time, and how those plans are projected to affect the federal budget.

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