Automatic for the Borrower: How Repayment Based on Income Can Reduce Loan Defaults and Manage Risk

This paper is the culmination of work by a consortium of five student-aid advocacy and research organizations – HCM Strategists, the Institute for Higher Education Policy (IHEP), the National Association of Student Financial Aid Administrators (NASFAA), New America (NA), and Young Invincibles (YI) – with assistance from the Association of Public and Land-grant Universities (APLU), Committee for Economic Development (CED), the National Campus Leadership Council (NCLC), and the National College Access Network (NCAN). The proposals contained in this paper reflect research conducted by and discussions between members of the consortium. However, not all proposals included in this paper are supported by all groups in the consortium. Financial support for this research was provided by a grant from the Bill & Melinda Gates Foundation through the Reimagining Aid Design and Delivery (RADD) project.

  • Publication Date : 3/19/2014
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