How the US Government Created the Student Loan Crisis by Ben Johnson SOURCE: Foundation for Economic Education

"The Congressional Budget Office (CBO) spelled out the process in a thorough, February 2020 report. CBO researchers followed college graduates who began paying off student loans in 2012. “By the end of 2017, over 75% of those borrowers owed more than they had originally borrowed. By contrast, the median balance among borrowers in fixed-payment plans decreased steadily,” they noted. “Loans are often repaid more slowly under income-driven plans because the required payments are too small to cover the accruing interest. As a result, borrowers in such plans typically see their balance grow over time rather than being paid down.”