Image by David Plunkert Featured in The New York Times

U-M Professor of Economics, Education, and Public Policy Susan Dynarski was quoted in the article, “Students Look to Loan Alternatives to Simplify Process and Ease Burden,” by Mark Stein for The New York Times. Stein examines funding options for higher education such as income-share agreements, private loans, federally subsidized loans, and crowdfunding to name a few.

According to Stein, Dynarski favors “replacing the current ‘bewildering array’ of options with a single government program, Loans for Educational Opportunity, in which federal low-interest loans would be repaid via payroll deductions after the students graduate.” Dynarski explains, “Student loan payments will automatically rise and fall with a borrower’s earnings, just as contributions to Social Security rise and fall.” She continues that the government should manage this program, as the income-tax system would allow for the most efficient execution of it.