["International Economic Review, EarlyView. ", "\nABSTRACT\nCollege loans facilitate access to education, but the repayment burden may distort posteducation human capital investment. We examine the role of college loans and loan repayment policies through a structural model of individuals' dynamic decisions on borrowing/saving, labor supply, and costly human capital investment. We estimate two versions of the model using data from NLSY79: one with natural borrowing limits and another with parameterized limits. Counterfactual simulations suggest that, relative to the standard fixed repayment plan, income‐driven repayment (IDR) plans modestly increase educational attainment, lifetime earnings, and individual welfare; accounting for lifetime income taxes, they also increase government revenue."]