The Effects of Income-Driven Repayment on Borrowers’ Financial Health, Employment, and Graduate School Enrollment

2020 SLLI Research Grant

SLLI is awarding a grant to Lesley Turner, Associate Professor of Economics at Vanderbilt University, and Rajeev Darolia, Associate Professor of Economics and Public Policy at the University of Kentucky. Professors Turner and Darolia will use SLLI datasets in conjunction with other data to explore the long-term impact of income-driven repayment (IDR) on borrowers’ financial lives. Their research will explore the long-term benefits that this critical protection provides borrowers across their financial lives and broader decision making, including the impact of IDR on borrowers’ future earnings, educational investments and household formation. To date, policymakers have lacked the insight needed to craft fulsome solutions to address the domino effect of student debt. This research will help to complete the puzzle, revealing if and how IDR can be used to mitigate the longer-term ramifications of student debt.

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