from the Jain Family Institute, a nonprofit research organization, delved into the impact of the student-loan payment pause over the past few years, and how borrowers' balances have fared. While some might expect balances to decrease when a borrower enters repayment, the report found the opposite.
"As the cost of college continues to rise, in turn leading to larger loan balances at origination, the cycle of interest accumulation during in-school deferrals is sure to continue," it said. . Specifically, the department proposed removing capitalization on loans entering repayment following a grace period, on federal loans during forbearance periods, and on defaulted loans.to prevent unpaid monthly interest
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