"Student Loan Repayment: Challenges and Preparation for Borrowers"

A new report from the Jain Family Institute reveals that much of the $1.8 trillion in student debt won't ever be repaid, and the government is poised to take a bath on its student loan portfolio. The report cites the ever-increasing cost of college, decreased state funding of higher education, stagnant wages, and more higher education requirements as factors contributing to non-repayment. The three-year payment pause has been a temporary reprieve, but once payments resume in October, all of the financial progress borrowers made over the past three-plus years will be reversed. The new income-driven repayment plan proposed by the Biden administration could exacerbate the non-repayment.