Trends in Student Loan Repayment

B-Tier
Journal: National Tax Journal
Year: 2024
Volume: 77
Issue: 3
Pages: 681 - 710

Authors (3)

Rajeev Darolia (not in RePEc) Tomás Monarrez (not in RePEc) Lesley J. Turner (University of Chicago)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We document changes in the rate at which borrowers repay their student loans by calculating a borrower-level loan paydown rate — the percentage change in outstanding debt relative to debt at repayment entry. The typical borrower entering repayment in 2005 repaid 26 percent of their loan within five years versus 5 percent for the typical borrower entering repayment in 2014. Paydown rate declines vary by educational attainment, school type, outstanding debt at repayment entry, and repayment plan. Shifts in repayment plan and debt can explain some of the shift in the distribution of paydown rates over time, but most remains unexplained.

Technical Details

RePEc Handle
repec:ucp:nattax:doi:10.1086/731554
Journal Field
Public
Author Count
3
Added to Database
2026-01-29