Income-Based Loans Made Simple

By Michael Stratford. The array of different repayment options on federal student loans should be replaced with a single, income-based repayment system that automatically deducts payments from borrowers’ paychecks, according to a new policy proposal published Monday by the Brookings Institution’s Hamilton Project
The paper argues that the current federal loan system (including its income-based repayment options) does not do a good job of preventing defaults because it is too complicated and burdens young workers with large payments when they are least able to handle them. Read more...