The student loan repayment pause has come to an end, a reality that promises to make life exponentially more difficult economically for countless borrowers nationwide. The NAACP, however, remains committed to calling for major student debt relief.
“Rest assured; we’re not giving up,” said NAACP National Director, Youth and College Division, Wisdom Cole. “Education should be the key to financial freedom, not the barrier.
However, for college-attending Blacks, education has most certainly become a barrier to an improved economic reality.
The Education Data Initiative breaks it down like this:
Black college graduates owe an average of $25,000 more in student loan debt than White college graduates. Four years after graduation, Black students owe an average of 188% morethan white students borrowed. Black student borrowers are the most likely to struggle financially due to student loan debt making monthly payments of $250. Making matters worse, Blacks who have incurred student debt are the second-most likely to have monthly payments of $250 or more, the highest amount of any racial group, and surpassed only by indigenous (Native American) student borrowers.
This ongoing, mountainous student debt hits Blacks in other ways. Nearly half (46%) of Blacks who owe on their student debt were more likely than student borrowers of any other race to put off buying a home, the purchase many economists believe is the most important asset to possess in order to build wealth and greater economic security.
Moreover, 58% of Black borrowers don’t believe student loans have advanced racial equality, and two out of three (66%) say they regret ever taking out student loans to fund their education.
“Black borrowers remain disproportionately impacted by student loan debt, and immediate and sustained debt relief is essential to the Black community’s economic future,” said Cole, in a statement.
Cole wants Black borrowers to know that as the NAACP continues to fight for student loan forgiveness there are existing pathways to student loan debt relief, including the following:
Public Service Loan Forgiveness (PSLF)
The PSLF program forgives the remaining balance on a borrower’s direct loans after they’ve made 120 qualifying monthly payments while working full-time for a qualifying employer. Qualifying employers include government organizations, non-profit organizations, and other eligible public service organizations.
Saving on A Valuable Education (SAVE) Plan
Launched on Aug. 22, the SAVE Plan is an income-driven repayment plan that can cut many borrowers’ monthly payments to zero, save other borrowers around $1,000 per year, prevent balances from growing because of unpaid interest, and move borrowers one step closer to forgiveness.
Teacher Loan Forgiveness
Are you or someone you know an educator? This program forgives up to $17,500 in direct subsidized or unsubsidized loans or subsidized or unsubsidized Federal Stafford Loans for teachers who work full-time for five years at a qualifying school or educational service agency. Only certain subject areas are eligible.
“As we move forward, we will continue to hold our elected officials accountable for closing the racial wealth gap, and we won’t stop until we achieve an equitable future for all free from the burden of student debt,” added Cole.
Visit naacp.org to further explore student debt relief options.
