Black Borrowers Rejoiced After Biden Administration Announced Latest Student Loan Action

Student Loan Action Aids Black Borrowers

According to the Crusader, the Biden Administration will cancel $39 billion in federal loan debt for over 800,000 borrowers. This move benefits Black student loan borrowers who face an unfair burden of student debt.

The initiative ensures borrowers receive full credit for qualifying payments under the Department’s Income-Driven Repayment (IDR) plans.

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Black Borrower’s Student Loan Debts and Their Struggles

Black college graduates have an average student loan debt of $52,000, and more than half have a net worth lower than their loan debt. Making a monthly payment of $250 is a struggle for Black student loan borrowers.

Four years after graduation, Black borrowers owe 188% more on their student loan debt compared to whites. Only 157 borrowers have been granted forgiveness by the Education Department as of June 1, 2021, despite the eligibility of thousands of others. Half of the outstanding federal student direct loans, totaling over $1 trillion, are being paid by borrowers using IDR plans.