Exploring the Relationship of Enrollment in IDR
As federal policymakers consider changes to income-driven repayment (IDR) schemes, research examining the characteristics and financial behaviors of student loan borrowers participating in IDR is necessary. Using the nationally representative Survey of Consumer Finances, we examined the demographics of IDR enrollment. Counter to expectations, low-income borrowers, and borrowers with high debt-to-income ratios are less likely to enroll in IDR. Conditional on having a large amount of debt, married women of color are likely to enroll in IDR programs. Findings concerning IDR participation may be highly sensitive to how groups are defined and what covariates are in models. IDR participation does not predict engagement in other financial behaviors such as retirement savings or homeownership.
Collier, Daniel; Fitzpatrick, Dan; and Marsicano, Christopher R.
"Exploring the Relationship of Enrollment in IDR to Borrower Demographics and Financial Outcomes,"
Journal of Student Financial Aid: Vol. 51
, Article 2.
Available at: https://ir.library.louisville.edu/jsfa/vol51/iss2/2