President Biden could cancel $ 10,000 of student debt, but civil rights defenders are concerned that this figure is not sufficient to address the central racial disparities observed in student debt loads. A new study published on Tuesday by the Century Foundation discovered that not only black students are disproportionately hurt by student debt, but also black parents through federal parents plus loans, a new finding in a federal program loan that It has been mainly excluded from the debate to the relief of student debt.
Black borrowers, who are more likely to be low income and low wealth, assume more student debt and, often, have difficulty paying such debt. Graduated black borrowers tend to have 50 percent more in students' debt compared to their white classmates, increasing 100 percent in four years after graduation. In addition, Black College graduates have seven times less wealth than White College graduates, which contribute to struggles to pay for the debt of student loans. Enough to address the financial toll that student debt faces black borrowers. An analysis of the Roosevelt Institute discovered that canceling $ 50,000 of student debt by borrower would increase the richness of black Americans by 40 percent immediately and drastically boost economic recovery.
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"although it addresses part of the load, it is not enough to really address The high balances that black borrowers have, ”said Victoria Jackson, deputy director of Higher Education Policy of Education Trust." Black borrowers on average are borrowing around $ 39,000, which is much higher than any other racial or ethnic group ". Parents can take to help cover the cost of their children's education. comparison c On 26 percent of Latinos and 8 percent of white borrowers. As a result, black borrowers fight to pay such debt, contributing even more to the racial wealth gap.googetag.cmd.push (function () Googetag.display ("dfp-ad-article_in_article");););););););););););););););););););););););););););
“While loans for parents can open doors for children, many doors close for parents who support them. These loans are often taken by families for whom the university is already the least accessible, the lowest income families and the color families, which make up the financial barriers that face and catch families in multigenerational debt, "Peter said Granville, author of the report and associate of senior policy in TCF. They have parents who owe $ 104 billion through this federal loan program. They have higher interest rates and allow borrowers to assume more debt without having the same options to reduce monthly payments or seek forgiveness as other federal programs of loans. It is of construction, parents often fight to pay these debts. After 10 years of refund, on average, 55 percent of the initial balance remains.
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