Trends in Student Loan Repayment

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.

Read the full paper featured in the National Tax Journal.