Jul 14, 2023
The average Black borrower owes $52,726 in student loan.
Yes, Black students carry more student loan debt than other students. According to a 2022 report by the Brookings Institution, the average Black borrower owes $52,726 in student loan debt, compared to $28,006 for the average White borrower. This gap is due to a number of factors, including:
Black students are more likely to attend college than white students. In 2020, 60% of Black students enrolled in college, compared to 57% of white students.
Black students are more likely to attend more expensive colleges. The average cost of attendance for a Black student at a four-year college is $31,239, compared to $25,450 for a White student.
Black students are less likely to receive financial aid. Black students are less likely to receive Pell Grants, which are federal grants that help low-income students pay for college.
The high levels of student loan debt among Black students have a number of negative consequences. It can make it difficult for Black students to save for retirement, buy a home, or start a business. It can also lead to financial stress and anxiety.
There are a number of things that can be done to address the racial wealth gap in student loan debt. These include:
Making college more affordable for Black students. This could be done by increasing financial aid, making college more accessible to low-income students, and reducing the cost of college.
Canceling student loan debt for Black borrowers. This would provide much-needed relief to Black borrowers and help to close the racial wealth gap.
Educating Black students about the financial implications of student loan debt. This could help Black students make informed decisions about whether or not to take out student loans and how to manage their debt after graduation.
Taking these steps would help to ensure that all students, regardless of race, have the opportunity to achieve their educational and financial goals.