Digital Library

of the European Council for Modelling and Simulation



Optimal Control Of An Income Contingent Student Loan System


Edina Berlinger, László Gerencsér, Zalán Mátyás, Miklós Rásonyi

Published in:


ECMS 2007 Proceedings

Edited by: Ivan Zelinka, Zuzana Oplatkova, Alessandra Orsoni


ISBN: 978-0-9553018-2-7

Doi: 10.7148/2007


21st European Conference on Modelling and Simulation,

Prague, June 4-6, 2007


Citation format:

Berlinger, E., Gerencser, L., Matyas, Z., & Rasonyi, M. (2007). Optimal Control Of An Income Contingent Student Loan System. ECMS 2007 Proceedings edited by: I. Zelinka, Z. Oplatkova, A. Orsoni (pp. 235-240). European Council for Modeling and Simulation. doi:10.7148/2007-0235



A description and a stochastic model for income- contingent loan systems is presented. The creditor’s risk is investigated in terms of the two basic control parameters of the model, the risk premium and the repayment quotient. Self-financing of the system is de- fined and visualized using simulation techniques. An optimal parameter setting is proposed to reach zero- profit operation.

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