About half of the more than $1 trillion in outstanding federal student Direct Loans are being repaid by borrowers using IDR plans. Some borrowers in IDR plans are now potentially eligible for forgiveness of their remaining loan balances after 20 or 25 years of payments. GAO was asked to review IDR forgiveness. This report examines: (1) how many…

Today, institutions of higher education may charge whatever they wish for the education they provide, and the government provides the capital for student's tuition through loans without institutions bearing any meaningful risk if students do not repay. Naturally, this drives up costs and borrowing. On top of tuition and fees, students can borrow…

Evidence from behavioral economics suggests that the framing and labeling of choices affect financial decisions. Through a randomized control trial of over six thousand high school seniors, community college students, and adults without a college degree, we identify the existence of both framing and labeling effects in respondents' preferences for…

This paper provides a brief overview of the current state of federal accountability and the need for change, and a summary of the landscape of state accountability reforms through funding structures for public colleges and universities. It explores key questions or decision points that must be addressed in designing a federal accountability system…

As part of a series of hearings on the reauthorization of the Higher Education Act of 1965, testimony was heard on the safety and soundness of the Student Loan Marketing Association (Sallie Mae). Witnesses discussed many issues surrounding financial oversight of federal agencies and financial risk to the taxpayer through the potential failure of…

As part of a series of hearings on the reauthorization of the Higher Education Act of 1965, testimony was heard over 3 days on the integrity of the federal student financial assistance programs. In the course of addressing this issue witnesses testified the first day about public confidence in the programs, accreditation of schools and their…