Student loan relief highlights burden on Black borrowers

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On average Black borrowers carry a heavier burden of student loan debt than white borrowers.

FILE - President Joe Biden speaks about student loan debt forgiveness in the Roosevelt Room of the White House, Aug. 24, 2022, in Washington. One in four Black borrowers would see their debt cleared entirely under the administrations plan, which cancels $10,000 in federal student loan debt for those with incomes below $125,000 a year, or households that earn less than $250,000.

“You are ensuring that your little brothers and sisters have what they need for school,” Perry said. “You are helping your parents pay off their rent, their house. So your quote-unquote wealth doesn’t even have time to be built because you’re trying to help your family survive.”Black borrowers on average carry about $40,000 in federal student loan debt, $10,000 more than white borrowers, according to federal education data. The disparity reflects a racial wealth gap in the U.S.

Perry faced steep challenges to complete her education. Homeless for nearly a year, she had to drop out of school and saw the interest on her loans balloon. She also faced incarceration. Eventually, she was able to get her record expunged and earned a master’s in public health from Tulane University, graduating just in time for the COVID-19 pandemic.

In her first months of graduate school, before her fellowship salary kicked in, TC Headley called the university's financial aid office to ask if there was help to cover the cost of books and supplies. Instead, the woman on the phone told her to call her parents and ask for more money.

 

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