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The Congressional Budget Office evaluates how these plans differ from fixed monthly payment plans, tracks how enrollment has changed over time, and estimates their projected impact on the federal budget. Key findings include rapid growth in loan volumes repaid through income-driven plans and higher estimated lifetime government costs versus fixed-payment plans under Federal Credit Reform Act accounting rules.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/income-driven-repayment-plans-for-student-loans-budgetary-costs-and-policy-options/583593/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/income-driven-repayment-plans-for-student-loans-budgetary-costs-and-policy-options/583593.png","ImageObject",300,407,{"name":92,"@type":93},"Jacob","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-27","2026-10-15",true,{"@type":102,"interactionType":103,"userInteractionCount":24},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What distinguishes income-driven repayment plans from fixed-payment plans?","Question",{"text":112,"@type":113},"Income-driven plans cap required payments as a share of borrowers’ income and allow loan forgiveness after 20 or 25 years. Fixed-payment plans require set monthly payments without the same forgiveness timeline.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How has participation in income-driven repayment plans changed over time?",{"text":117,"@type":113},"Enrollment and the share of loans repaid through income-driven plans grew rapidly over the past decade as availability expanded and terms became more favorable.",{"name":119,"@type":110,"acceptedAnswer":120},"What budgetary cost results does the report project?",{"text":121,"@type":113},"The report projects that loans repaid through income-driven plans have greater lifetime costs to the government than those repaid through fixed-payment plans, based on Federal Credit Reform Act accounting estimates.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},583593,1792190791,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":24,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},962084931830,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE  \nIncome-Driven Repayment Plans for Student Loans: Budgetary Costs and  \nPolicy Options  \n© [Ekaphon maneechot/Shutterstock.com](Ekaphon maneechot/Shutterstock.com)  \nFEBRUARY 2020  \nAt a Glance  \nIntroduced as a way to make student loan repayment more manageable, income-driven plans limit payments to a percentage of borrowers’ income and allow for loan forgiveness after 20 or 25 years. The Congressional Budget Office examined how income-driven plans differ from plans that require fixed monthly payments, how enrollment in income-driven plans has changed overtime, and how those plans are projected to affect the federal budget.  \n• Growth in Loans Repaid Through Income-Driven Plans. The volume of loans in income-driven plans grew rapidly over the past decade as they became available to more borrowers and their terms became more favorable. CBO estimates that nearly half the volume of direct student loans in repayment was being repaid through income-driven plans at the end of 2017. Many borrowers—especially those with low income and large balances—make payments that are too small to cover the interest on their loans, which causes their balances to increase over time.  \n• Budgetary Costs of Income-Driven Plans. CBO projects that of the loans disbursed between 2020 and 2029, those repaid through income-driven plans will have greater lifetime costs to the government than those repaid through fixed-payment plans. Estimated under the accounting rules of the Federal Credit Reform Act of 1990, the cost for loans repaid through income-driven plans is equal to 16.9 percent of the disbursed amount; for other loans, the cost is −12.8 percent of the disbursed amount. In other words, for every dollar disbursed, the government is projected to lose 16.9 cents for loans repaid through income-driven plans but gain  \n12.8 cents for other loans.  \n• Options for Changing Income-Driven Repayment. CBO assessed the costs of policy options that would change the availability of income-driven plans or change how borrowers’ required payments are calculated. CBO estimates that changes to income-driven plans for graduate students would have amuch larger effect on the budget than changes for undergraduate students. That is because graduate students are more likely to participate in such plans and tend to have larger—sometimes much larger—loan balances.  \n[www.cbo.gov/publication/55968](www.cbo.gov/publication/55968)  \nContents  \n1  \n2  \n3  \n4  \nA  \nB  \nC  \nSummary 1  \nHow Do Income-Driven Repayment Plans Differ From Other Repayment Plans? 1  \nHow Has Enrollment in Income-Driven Repayment Plans Changed Over Time? 1  \nWhat Are the Budgetary Costs of Income-Driven Repayment Plans? 2  \nWhat Are Some Options for Changing Income-Driven Repayment Plans? 3  \nChapter 1: An Introduction to Income-Driven Repayment Plans 5  \nAn Overview of Federal Student Loans 5  \nIncome-Driven Repayment Plans 6  \nBOX 1-1. INCOME-DRIVEN REPAYMENT PLANS IN OTHER COUNTRIES 7  \nChapter 2: Borrowers and Loans in Income-Driven Repayment Plans 13  \nGrowth in the Share of Borrowers and the Share of Loans 13  \nChanges in the Distribution of Loans Among Income-Driven Repayment Plans 13  \nDifferences Between Borrowers in Income-Driven and Fixed-Payment Plans 14  \nChapter 3: The Budgetary Costs of Income-Driven Repayment Plans 19  \nHow the Cost of Student Loans Is Calculated 19  \nBOX 3-1. FAIR-VALUE ESTIMATES OF THE COST OF STUDENT LOANS 20  \nProjected Subsidy Rates for Loans Repaid Through Income-Driven Plans 21  \nForgiveness of Loans in Income-Driven Plans 21  \nChapter 4: Policy Options 27  \nOptions That Would Change the Availability of Income-Driven Repayment Plans 28  \nOptions That Would Change How Borrowers’ Payments Are Calculated 31  \nAppendix A: Present-Value Calculations 35  \nAppendix B: CBO’s Approach to Estimating the Cash Flows of Loans in Income  \nDriven Repayment Plans 37  \nData Sources 37  \nHow CBO Projected the Characteristic","cbCaiqKFBSsNkcoN","https://ap.wps.com/l/cbCaiqKFBSsNkcoN","pdf",1602881,52,"English","# Summary\n# How Do Income-Driven Repayment Plans Differ From Other Repayment Plans?\n# How Has Enrollment in Income-Driven Repayment Plans Changed Over Time?\n# What Are the Budgetary Costs of Income-Driven Repayment Plans?\n# What Are Some Options for Changing Income-Driven Repayment Plans?\n# Chapter 1: An Introduction to Income-Driven Repayment Plans\n# Chapter 2: Borrowers and Loans in Income-Driven Repayment Plans\n# Chapter 3: The Budgetary Costs of Income-Driven Repayment Plans\n# Chapter 4: Policy Options\n# Appendix A: Present-Value Calculations","[{\"question\":\"What distinguishes income-driven repayment plans from fixed-payment plans?\",\"answer\":\"Income-driven plans cap required payments as a share of borrowers’ income and allow loan forgiveness after 20 or 25 years. Fixed-payment plans require set monthly payments without the same forgiveness timeline.\"},{\"question\":\"How has participation in income-driven repayment plans changed over time?\",\"answer\":\"Enrollment and the share of loans repaid through income-driven plans grew rapidly over the past decade as availability expanded and terms became more favorable.\"},{\"question\":\"What budgetary cost results does the report project?\",\"answer\":\"The report projects that loans repaid through income-driven plans have greater lifetime costs to the government than those repaid through fixed-payment plans, based on Federal Credit Reform Act accounting estimates.\"}]","Income-Driven Repayment Plans for Student Loans: Budgetary Costs and Policy Options | PDF",1792047829,131]