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Risk Sharing: The Student Loan Reform Whose Time Has Come?
AEI
2025.09.04
Student loans are risky for students and taxpayers: Students who fail to pay down their
loans can face serious consequences, while taxpayers lose billions.
Risk-sharing policies require colleges to bear some of the financial risk that student loans will
not be repaid. Though untried in the US, risk sharing has a successful track record in Brazil.
An early version of the 2025 One Big Beautiful Bill Act would have required colleges to
reimburse taxpayers for some losses on student loans; this provision was not in the final bill.