Another Lesson on Caution in IDR Analysis: Using the 2019 Survey of Consumer Finances to Examine Income-Driven Repayment and Financial Outcomes

We update Collier et al. (2021) by using the Survey of Consumer Finances (SCF) 2019 dataset to explore characteristics of enrollees in Income-Driven Repayment (IDR). SCF 2019 is more likely to include borrowers engaged in REPAYE. Findings support an ongoing need to encourage greater IDR participatio...

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Bibliographic Details
Published inThe Journal of student financial aid Vol. 50; no. 2
Main Authors Collier, Daniel A, Fitzpatrick, Dan, Marsicano, Christopher R
Format Journal Article
LanguageEnglish
Published Center for Economic Education at the University of Louisville 30.06.2021
Subjects
College Students
Consumer Economics
Debt (Financial)
Gender Differences
Income
Loan Repayment
Low Income Students
Money Management
Paying for College
Student Loan Programs
Surveys
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Summary:We update Collier et al. (2021) by using the Survey of Consumer Finances (SCF) 2019 dataset to explore characteristics of enrollees in Income-Driven Repayment (IDR). SCF 2019 is more likely to include borrowers engaged in REPAYE. Findings support an ongoing need to encourage greater IDR participation for lowest-income borrowers and reinforced female borrowers were more likely than male borrowers to be enrolled. Again, model specification affects findings regarding IDR enrollment. REPAYE appears to have widened access to IDR by lowering the debt floor for entry. IDR enrollment was correlated with less money in a traditional checking account and a lower chance of engaging in retirement savings.
ISSN:0884-9153
DOI:10.55504/0884-9153.1749