Brief Beyond the Standard Repayment Plan: Smaller Student Loan Payments and Short-Term Outcomes
Kristin Blagg
Display Date
Download Report
(201.14 KB)

Borrowers have more choices than ever for paying down their student loans. Although many borrowers still automatically enroll in standard 10-year, fixed-payment plans, some opt to enroll in programs that allow smaller monthly payments, such as income-driven repayment plans or plans with longer repayment periods. I present a new analysis of borrower-level credit bureau data, showing that borrowers who start repayment with smaller or modified payments have better short-term loan outcomes but do not fully avoid delinquencies and defaults.
Research Areas Education Wealth and financial well-being
Tags Higher education Asset and debts Beyond high school: education and training
Policy Centers Income and Benefits Policy Center Center on Education Data and Policy