President Joe Biden is unveiling plans that will provide relief to minority borrowers.
A press release shares the Biden administration is looking to build on its efforts to eradicate debt for Americans. Already, it has provided financial relief to 4 million borrowers.
Now, pending on approval of its latest proposal, the Biden administration is looking to scale its efforts to more than 30 million borrowers and projects it will positively impact Black borrowers, among other targeted demographics including Hispanic borrowers as well as working- and middle-class families.
According to Education Data Initiative, Black graduates owe an estimated $25,000 more in student loan debt than their white counterparts. Furthermore, four years after graduation, Black students will be burdened with over 188% more debt than white students.
A separate study looking into students who started college between 1995 and 1996 showed the median debt for white borrowers decreased by 94% 20 years later, with nearly half reporting no student debt. However, Black borrowers still owed 95% of their cumulative borrowing total after 20 years.
The Biden administration’s new initiatives aim to improve these outcomes by offering relief to various groups: borrowers whose debt surpasses the original amount before repayment; eligible individuals yet to apply for loan forgiveness; borrowers who initiated repayment years back; participants in low-financial-value programs; and those facing loan repayment difficulties.
“Black women remain one of the most educated groups in our country, and for the last four years Joe Biden and Kamala Harris have worked to put money back in our pockets by canceling student loan debt for so many of us,” Representative Lauren Underwood (D-IL) told AFROTECH™. “There is so much at stake for Black Americans this election. Today’s announcement makes it very clear that the President and Vice-President are committed to working to close the racial wealth gap and make life easier for hardworking people burdened with student loan debt to take care of themselves and their families.”
The plans’ impact will lead to the elimination of accrued interest for 23 million borrowers, the cancellation of student loan debt for more than 4 million borrowers, and at least $5,000 in debt relief for over 10 million borrowers.
“When I speak to audiences these days, especially Black audiences, I ask them to raise their hands if they or someone they know has had their student debt canceled — and several hands always go in the air,” explained Senator Raphael Warnock (D-GA), a Pell Grant recipient who became the first person in his family to graduate from college, in a statement provided to AFROTECH™. “That’s what delivering for Black Americans looks like, and today’s announcement is just more proof of the President and Vice President’s commitment to delivering for the Black community and our entire country.
He added, “With one hand tied behind their backs Joe Biden and Kamala Harris have managed to completely cancel student debt for millions of Americans, which narrows the racial wealth gap and puts real money back in people’s pockets. This is meaningful student debt relief, which I’ve been advocating for years, and another example of what’s on the line for Black Americans in November.”
