On this episode of the AEI Events Podcast, AEI’s Jason Delisle is joined by Urban Institute scholars and policy experts to discuss factors that predict if borrowers are likely to default on their student loans and what happens to them after the point of default. The conversation reveals that some of the common narratives about default are incomplete. Panelists also discuss possible ways that policymakers can help borrowers avoid and address their defaults.

The first panel, moderated by Josh Mitchell of The Wall Street Journal, starts with brief presentations by Delisle and the Urban Institute’s Kristin Blagg that highlighted how the current set collection fees can be unfair, inconsistent, and counterintuitive. The panel continues by discussing the possible effects of underwriting federal student loans and the consequences that underwriting loans through credit checks might have on reducing access to college and the risk of default.

On the second panel, all the panelists voiced their disapproval of the current set of complex policies that dictate how borrowers move their loans back to good standing. They propose possible solutions that policymakers could take to help borrowers in financial distress and agree that more data and research are needed to help improve policies aimed at reducing default.

This event took place on September 6, 2018.

Watch the full event here.

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