Published in SIAM Journal on Financial Mathematics · View the paper (DOI)
A mathematical model suggests repaying loans quickly can minimize cost, but delaying payments may be more beneficial for large balances. Borrowers should consider maximizing early payments and switching to income-based repayment when forgiveness is near.
Coverage from 2 institutions
- Finding the optimal way to repay student debt Society for Industrial and Applied Mathematics · Apr 29, 2021 · first to report
- Researchers find optimal way to pay off student loans University of Colorado at Boulder · Jun 18, 2021