Exploring the Relationship of Enrollment in IDR to Borrower Demographics and Financial Outcomes

As federal policymakers consider changes to income-driven repayment (IDR) schemes, research that examines the characteristics and financial behaviors of student loan borrowers participating in IDR is necessary. Using the nationally representative Survey of Consumer Finances, we examine demographics of IDR enrollment. Counter to expectations, low-income borrowers and borrowers with high debt-to-income ratios are less likely to enroll in IDR. Conditional on having large amount of debt, married women of color are likely to enroll in IDR programs. Research findings concerning IDR participation may be highly sensitive to how groups are defined and what covariates are in models. IDR participation does not predict engagement in other financial behaviors such as retirement savings or home-buying.