It also assumes higher education will always result in an earnings increase sufficient to retire debt, at least eventually

It also assumes higher education will always result in an earnings increase sufficient to retire debt, at least eventually

The premise of expanding IDR appears to have been that student debt default must be due to temporary factors such as difficulty finding a job at an income sufficient to pay off loans. If the causes of delinquency and default are temporary, then, IDR is a temporary solution to that failure of income to line up with required payments. This effectively extends the forbearance that is a standard feature of student loans, lasting six months following completion, into the future indefinitely on an opt-in basis, until such time as the borrower is able to find a job.

Like much else about the federal student loan system, that diagnosis is based on an oversimplified picture of who students are-that all students attend college before entering the workforce, at which point they will enjoy higher earnings thanks to the college wage premium.

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