The federal role in higher education has grown over the past two decades, and now a new administration has the opportunity to strengthen policies that support students and their colleges and universities. To help inform these decisions, the Urban Institute convened a bipartisan group of scholars and policy advisers to write a series of memos highlighting some of the most critical issues in higher education and recommending policy solutions. This memo proposes a new system of income-driven loan repayment designed to address some of the problems with the current repayment options. [This is part of the "Memos to Congress and the Administration on Higher Education" collection. For a summary of the memos, see "A Principled Federal Role in Higher Education" (ED578885).]