The federal role in higher education has grown over the past two decades, and now a new administration has the opportunity to strengthen policies that support students and their colleges and universities. To help inform these decisions, the Urban Institute convened a bipartisan group of scholars and policy advisers to write a series of memos highlighting some of the most critical issues in higher education and recommending policy solutions. This memo proposes a new system of income-driven loan repayment designed to address some of the problems with the current repayment options.
This memo was updated on January 10, 2018. A legend and note were added to figure 1 for clarity.