Government backed income contingent student loans are an increasingly being used to fund higher education. An income contingent repayment plan acts as an incremental marginal tax on labor earnings, which could cause individuals to distort their work effort. This paper uses an administrative...

Government backed income contingent student loans are an increasingly being used to fund higher education. An income contingent repayment plan acts as an incremental marginal tax on labor earnings, which could cause individuals to distort their work effort. This paper uses an administrative...

This report updates and extends the previous IFS work to examine the consequences of these changes for graduates. In particular, we use a new model of graduate earnings and repayments and explore in more detail the pattern and size of loan repayments made, including by different types of graduates.