Economist Sue Dynarski explores the "Pay It forward" student lending system and suggests ways to make it a more successful system for student loan repayment.
On October 21st, THP hosted a forum and release three new policy proposals by outside experts focusing on the evolving role of higher education, and how changes in student lending and financial aid policies can help improve college outcomes. Thought leaders in higher education from around the country—including Vassar College President Catharine Bond Hill; LaGuardia Community College President Gail Mellow; University of North Carolina President Thomas Ross; Wesleyan University President Michael Roth; and Brookings’ Brown Center for Education Policy Director Grover “Russ” Whitehurst—joined the discussion to comment on the proposals, and provided their thoughts on the future of higher education in American society.
The current federal student lending system requires students to repay loans during the first decade after college, when their incomes are relatively low and variable. The University of Michigan's Susan Dynarski and Daniel Kreisman propose a strategy to improve student lending through the adoption of an income-contingent repayment plan.
The Hamilton Project held a panel discussion that featured recent strategy and discussion papers on ways to promote opportunity and growth through our nation's education system. The Project is examining the full spectrum of early childhood, K-12, and higher education.
This paper analyzes the federal student aid system and finds that the level of complexity makes it ineffective at increasing college enrollment. The paper then outlines a simplified system to address this issue.