Thursday, October 10, 2019

How Student Debt is Disrupting Life Chances and Widening the Racial Wealth Gap Institute on Assets and Social Policy - Brandeis University

The current higher education financing regime sediments and exacerbates inequality, and
student loans adversely affect the Black-White racial wealth gap.6 Black students—and students at for-profit universities, who are more likely to be students of color—often face the greatest challenges as they try to finance their degrees with student loans. They take on more loans, amass higher amounts of loans, and experience greater difficulty in paying off loans.7 Frequently without family financial wealth to support repayment and facing ongoing discrimination in the labor market,8 Black borrowers are much more likely to experience longterm financial insecurity due to student loans. Would anybody knowingly design a system where, two decades after starting college, many Black borrowers still are paying on virtually all of their student loans, while for the typical White borrower, a minimal debt burden remains?

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