Student Loan Repayment: A Global Review of Behavioural, Financial, and Policy Dimensions (2020–2025)
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Abstract
This study provides a general review explores global trends in of behavioural, economic, and psychosocial aspects of student loan repayment systems. It synthesizes empirical literature published between 2020 and 2025 from databases including Scopus, Web of Science, and Google Scholar. The review identifies six key themes: (1) rising interest in behavioural and psychosocial aspects of repayment; (2) financial self-efficacy and financial literacy have a strong influence on repayment outcomes, while minority groups suffer from disproportionate debt burdens; (3) income-driven repayment models effectively in reducing delinquency but are challenged by administrative complexity and unequal access; (4) psychological stress, financial strain, and low self-efficacy exacerbate repayment struggling, with structural barriers and pandemic shocks widen inequities; (5) targeted subsidies and need-based grants are more equitable than broad loan forgiveness, with a service-linked forgiveness enhancing workforce outcomes; and (6) policy innovations such as behavioural nudges, risk-sharing mechanisms, and streamlined administration can enhance sustainability and equity of repayment. This study offers a multifaceted synthesis that incorporates behavioural, financial, and policy perspectives worldwide with a focus on underrepresented regions and psychological aspects. As policy implication, the study highlights the importance of integrated behavioural interventions, simplified repayment structures, and culturally sensitive policies to promote the sustainability of repayments and wellbeing of borrowers.
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