How to Repair Income-Based Repayment of Student Loans

As Congress debates the issue of student-loan interest rates, several proposals have been put forward to extend current interest rates on subsidized Stafford loans or to reduce rates even further. However, if the goal is to protect students from unmanageable debt loads, income-based repayment is a far better tool than interest subsidies for both students and taxpayers, and should be the focus of reform efforts.