Could Student Loan Forgiveness Reduce the Racial Wealth Gap?

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Student loans may have once started out as an affordable way to pay for college, but it has long since exploded into a $1.6 trillion system that leaves borrowers unable to save, buy homes or retire.

“There’s a lot of misconceptions about student debt, higher education and debt cancellation,” says Ashley Harrington, federal advocacy director at the Center for Responsible Lending. “There’s this idea that it’s a problem for the privileged when the stats show it’s not,” Harrington added.

Black borrowers are disproportionately impacted by student debt, which both contributes to and perpetuates the racial wealth disparity. The National Center for Education Statistics (NCES) found that 77% of Black students borrow federal loans to cover tuition costs, compared to only 57.5% of white students.

While the extent of the student loan crisis and what it means to forgive the debt might not be largely known, many experts and advocates agree that debt forgivenes… Read More

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