This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity...

This paper studies the importance of dynamic earnings modeling for the design of income contingent student loans (ICLs). ICLs have been shown to be theoretically optimal in terms of efficiency in the presence of risk aversion, adverse selection and moral hazard, and have attractive equity...

The Higher Education Contribution Scheme (HECS) is an income‐contingent loan designed to collect tuition from Australian university students. The debt is collected on the basis of recorded incomes and, as a consequence, debtors living overseas will not repay. Using various data sources and...

This paper argues that an income contingent loan (ICL) should be considered for tertiary student living costs as a supplement to existing income support policy in Australia. It is shown that income support remains insufficient despite recent improvements to policy, and that as little as $1,500...