Student funding remains hotly contested. In this HEPI Debate Paper, Alan Roff examines the findings of the Office for Budget Responsibility, which regards the past treatment of student loans in the national accounts as a 'fiscal illusion'. Roff explores the consequences of this change of heart and pushes for an alternative approach to student…

Student debt is a convenient target in a presidential election year, but it obscures the true crisis: high dropout rates from low-quality postsecondary institutions and the unmanageable debt borne by students of those institutions. And despite rising student debt, monthly loan payments as a share of income have remained steady, added earnings…

In this paper, we consider lessons for other countries about the design of student loans with income-contingent repayments (i.e. repayments calculated as "x" per cent of each borrower's subsequent income). Using a dataset of 20,000 simulated lifetime graduate earnings paths, we estimate the cost and distributional effects of reforms in…

College graduates and current students are swimming in a sea of debt. As of this writing, the total amount of outstanding student loan debt has been estimated at $960 billion. The Occupy Student Debt movement, inspired by Occupy Wall Street, has suggested that all student loan debt should be forgiven. As a starting point, members of the movement…

President Obama has emphasized the importance of higher education, and recently implemented ambitious higher education finance reform that will serve to benefit college students now and in the future. Although these changes are noteworthy, little has been done to help the many individuals who currently owe student debt, particularly private debt,…

2008 has been a tumultuous year in the financial world, culminating in scandals and bailouts. In 2009, the author asserts, people can probably expect not only more financial upheaval, but also further attempts by state and local governments to stem the all-but-fated turmoil. But in all the talk of bailouts, of embattled homeowners, and the…

While student loans provide college opportunity for many, undergraduate student debt resulting from typical and heavy borrowing hinders future investments in human capital. Propensity score matching analysis of the NSF's 2003 National Survey of Recent College Graduates demonstrates that debt negatively affects the graduate school enrollment of…