Bruce Chapman is a professor of economics at the Crawford School of Public Policy at the Australian National University. He has a PhD from Yale University and has published around 200 papers, mainly in the areas of labor and education economics. He has advised the World Bank and the governments of around 20 countries on the issue of student loans policies.

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A quiet but radical transformation is changing student loan systems. Traditionally, loans made to borrowers deemed dependable are paid back at a set, prearranged time and amount. However, in recent decades, a different instrument, known as an income-contingent loan (ICL), has emerged as a major player in enabling students to receive and pay …

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