For many Black students, a college degree is sup- posed to promise success. But for too many, the success comes with a heavy price, student loan debt. With Black borrowers carrying the highest student loan balances and lower post graduate earnings. They are struggling with repayment at unreasonable rates, the dream of higher education is turning into a financial nightmare, widening the racial wealth gap instead of closing it. The racial wealth gap plays a major role in this disparity. The average Black family, holds significantly less generational wealth than white families, meaning there are fewer resources to pay for college out of pocket. As a result, Black students are more likely to take out loans, borrow larger amounts, and rely on federal assistance to afford tuition. What is thought to lead to financial security (a degree), often becomes a long-term economic setback. Studies show that after attending a four-year university, nearly half of Black borrowers owe more than they originally borrowed. Student loans delay homeownership, business ventures, and retirement savings, Black borrowers are left fighting an uphill battle for financial stability in a system that was never intended for them to win. The numbers don’t lie, according to data from the Education Data Initia- tive, Black students typically graduate with around $25,000 more in student loan debt compared to white students, on average Black students owe 188% more than white students. The default rate for Black borrowers is five times higher than for white borrowers. The Department of Education has removed access to applications for in- come driven repayment (IDR) plans in response to a court order. The SAVE plan is an IDR option created by the Biden administration; the courts have put a pause on this plan. According to ‘The Hill’, president and co-founder of the Student Debt Crisis Center, Natalia Abrams said, “Let’s be clear. This was a purposeful decision by the Trump Ad- ministration to harm borrowers and in no way needed to be done. Shutting down access to income-driven repayment plans was not the decision of the 8th Circuit, it was a malicious move by […]

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