Research Report Strengthening Federal Student Aid: An Assessment of Proposals for Reforming Federal Student Loan Repayment and Federal Education Tax Benefits
Sandy Baum, Martha C. Johnson
Display Date
File
File
Download Report
(762.06 KB)

Reviewing proposals for improving the complex array of federal student aid programs, we find agreement on some broad policy directions but considerable differences of opinion about the details. Many advocates support automatically placing student borrowers into income-driven repayment plans, which set payments at some percentage of discretionary income. And virtually no one argues against consolidating tuition tax credits and deductions into one credit. This comprehensive report examines over 20 proposals for reforming student loan repayment and education tax credits and deductions, evaluating the equity and efficiency of proposed provisions and providing recommendations for strengthening these components of federal student aid.

Download the appendix tables here.

Research Areas Education Taxes and budgets
Tags Higher education Beyond high school: education and training Higher Education Act
Policy Centers Center on Education Data and Policy
Related content
Media Name: ap_federal-student-aid-1.jpg
Recent proposals for reforming the current system of education tax credits and deductions take the constructive approach of seeking improvement in a system many would prefer to eliminate. Detailed proposals reviewed for the Strengthening Federal Student Aid report agree that the existing system i...
Media Name: ap_federal-student-aid-2.jpg
Amid concerns about student debt and default, many experts are calling for an income-driven student loan repayment system that will better protect students and significantly reduce defaults. Our review of detailed proposals related to income-driven repayment in the Strengthening Federal Student A...