An investigative exposรฉ on the negative amortization mechanism hidden within income-based repayment plans. While these programs are marketed as financial relief for the working class, they often set monthly payments lower than the interest accruing on the debt. This causes the total principal balance to grow even as you make on-time payments, effectively turning temporary loans into permanent wealth extraction tools for financial institutions. By keeping borrowers in a perpetual state of debt, the system prevents generational wealth and ensures that the creditor class continues to profit from the labor of the bottom ninety percent. This video breaks down the mathematical trap designed by lobbyists to keep the workforce mobile, indebted, and locked out of home ownership, revealing how the system is working exactly as designed.
