Wednesday, October 9, 2019
Student Debt Reinforces the Racial Wealth Gap, Study Finds - Andrew Kreighbaum, Inside Higher Ed
burden of student loans on young black people is a crisis that requires immediate policy action, argues a paper released Wednesday from the Institute on Assets and Social Policy at Brandeis University. The report finds that 20 years after entering repayment, the median white student borrower has paid back 94 percent of their student debt. The median black borrower, meanwhile, still owes 95 percent of their student loans, or roughly $18,500. Black borrowers experience more discrimination in labor markets and are more likely to support older relatives. But the hourly income gap between white and black workers is dwarfed by the size of the wealth gap, the report finds. In fact, the earnings gap has narrowed over the last 25 years, but the wealth gap has continued to grow.