BOSTON — A new report from a Boston-based research center found that nearly a quarter of all student loan payments made in 2019 went to interest, and is calling for a no-interest loan structure to be implemented to address the college debt crisis.
The Hildreth Institute report said that if the federal government was to implement this program change, it would provide economic relief to current and future borrowers, who are often saddled with so much interest that they can’t make substantial progress on paying down their principal student loan balances.
The report claims that interest payments are taking up a larger portion of student loan payments than ever before — surging from $13.1 billion in 2015 to $22.4 billion in 2019.
