A Risk Sharing Proposal for Student Loans

May 10, 2017

Share this

Title: A Risk Sharing Proposal for Student Loans

Author: Tiffany Chou, Adam Looney & Tara Watson

Source: The Hamilton Project

Authors of a recently released policy brief by The Hamilton Project argue that institutional accountability in the federal student loan program has weakened.

As a solution, the authors propose the use of risk-sharing based on cohort repayment rate to increase institutional accountability. Under their proposal, underperforming institutions would be assessed a penalty dependent upon student progress in repaying federal loans within the first five years of leaving the institution. Further, the revenue from the risk-sharing program would be used to fund a mobility bonus system to reward institutions serving low-income students well.

To learn more and read the full policy brief, please visit The Hamilton Project’s website.


If you have any questions or comments about this blog post, please contact us.

Keep Reading

Smith College Replaces Student Loans With Grants, Making Access and Equity a Priority

Beginning in fall 2022, Smith College will replace federal loans with institutional grants for all current and future undergraduates. Smith President Kathleen McCartney explains the three reasons that drove this decision.

October 26, 2021

Live Like a Student: UNI’s Financial Literacy Strategy Reduces Student Debt

The University of Northern Iowa has decreased student debt upon graduation by an average of $3,300 per borrower since 2010. President Mark Nook discusses the cornerstone of that success—Live Like a Student, the university’s counseling and financial literacy program.

January 3, 2018

Intercultural and International: Student Leadership Exchanges at VCUQatar

Valerie Jeremijenko, assistant dean for Student Affairs for Virginia Commonwealth University School of the Arts in Qatar (VCUQatar), discusses developing women’s leadership programing in the Middle East.

November 13, 2017