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Student Loan Relief Programs: Implications for Borrowers and the Federal Government

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  • Wenhua Di
  • Kelly D. Edmiston

Abstract

As college costs increase and more students borrow to fund their education, debt load and delinquency rates have become significant problems. Student loan obligations are challenging to manage for new graduates with lower earnings and for borrowers in financial hardship. This paper discusses the various federal student loan repayment relief programs that are available and their borrower and fiscal impacts. The implications for borrowers' costs and the federal budget vary significantly by loan amount, income level, and relief program.

Suggested Citation

  • Wenhua Di & Kelly D. Edmiston, 2017. "Student Loan Relief Programs: Implications for Borrowers and the Federal Government," Research Working Paper RWP 17-2, Federal Reserve Bank of Kansas City.
    • Handle: RePEc:fip:fedkrw:rwp17-02
    DOI: 10.18651/RWP2017-02
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    References listed on IDEAS

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    1. Bruce Chapman & Lorraine Dearden, 2022. "Income-contingent loans in higher education financing," IZA World of Labor, Institute of Labor Economics (IZA), pages 227-227, October.
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    7. Robert Shireman, 2017. "Learn Now, Pay Later: A History of Income-Contingent Student Loans in the United States," The ANNALS of the American Academy of Political and Social Science, , vol. 671(1), pages 184-201, May.
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    Cited by:

    1. Abraham, Katharine G. & Filiz-Ozbay, Emel & Ozbay, Erkut Y. & Turner, Lesley J., 2020. "Framing effects, earnings expectations, and the design of student loan repayment schemes," Journal of Public Economics, Elsevier, vol. 183(C).

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    More about this item

    Keywords

    Student loans; Repayment; Relief programs; Fiscal impact;
    All these keywords.

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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