This paper analyses potential links between extreme optimism and student loan debt. Prior work finds extreme optimism to be associated with imprudent household savings and investment decisions. This paper explores whether these findings are relevant to student loan decisions. Using the most recent administration of the Survey of Consumer Finances…

Policymakers and the public are increasingly concerned about the payoff students and taxpayers receive from government subsidies for postsecondary education. This concern has led advocates and policymakers to call for stronger quality assurance policies for colleges and universities. Past efforts to enact quality assurance policies have focused on…

The federal government now offers a multitude of complicated income-driven repayment (IDR) plans that are difficult to understand, enroll in, and stay in. Many students who would benefit from IDR do not enroll, and others will have large amounts of debt forgiven despite earning high wages. The current problems with IDR are not an indictment of the…

Evidence shows that what students study matters as much as, if not more than, where they study. Program-level measures can provide important data on student outcomes, which will allow policymakers to hold institutions and programs that receive federal funding accountable. This fact sheet highlights some of the most frequently discussed measures…

Policymakers have expressed increased interest in program-level higher education accountability measures as a supplement to, or in place of, institution-level metrics. But it is unclear what these measures should look like. In this report, we assess the ways program-level data could be developed to facilitate federal accountability. Evidence shows…

U.S. student debt now exceeds $1.6 trillion, and default rates are higher than for any other type of household debt. Yet even as many students struggle to make their monthly payments, few take advantage of a federal program that would make them more affordable. A variety of income-driven repayment (IDR) plans allow borrowers to pay a fixed…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

Government backed income contingent student loans are an increasingly being used to fund higher education. An income contingent repayment plan acts as an incremental marginal tax on labor earnings, which could cause individuals to distort their work effort. This paper uses an administrative dataset from the UK that links student loan borrowers…

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…

In response to the current Coronavirus Disease 2019 (COVID-19) pandemic, numerous questions have arisen regarding student loan repayment flexibilities and debt relief that may be available to individuals to alleviate potential financial effects related to COVID-19. The Higher Education Act of 1965 (HEA) generally authorizes several options for…

Current assessments of college value fall short of centering race in its measurements by ignoring the unique economic conditions students of color face. To support ongoing advocacy for equitable investments in both students of color and institutions serving the largest shares of racially marginalized students, in its latest analysis, The Institute…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

National Association of Student Financial Aid Administrators' (NASFAA's) National Student Aid Profile is an annual publication designed to give a high-level overview of the federal student financial aid programs that provide funding to millions of students each year. This profile includes an overview of: (1) The Federal Pell Grant Program; (2) The…

There are two initiatives that can dramatically change the way college pricing and student debt are being handled under the current system. Both are commonsense solutions that would, if accepted, dramatically help students, graduates and families burdened by the cost of tuition and the loans they take to earn their degrees. First, income-based…