Overview

Student loan debt poses a significant policy challenge in the United States, with around 10 percent of borrowers defaulting within three years of beginning repayment. The nation’s total of $1.73 trillion in student debt is managed by loan servicers that have often provided inadequate support, leaving many borrowers underinformed about their repayment options and struggling with administrative burdens.

MDRC is conducting a randomized controlled trial of Cohort Catalyst, a program developed by Ascendium Education Group that partners with institutions of higher education to assist former students in managing loan repayment and avoiding delinquency and default. The evaluation will draw on a sample of thousands of student loan borrowers from multiple institutions of higher education to estimate the impacts of the program on outcomes such as enrollment in income-based repayment plans, delinquency, and default.