Black and Latino student loan borrowers more likely to express regret about...

Black and Latino student loan borrowers more likely to express regret about education funding decisions

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The Pew Charitable Trusts released a report that shows Black and Latino student loan borrowers expressing more regret about the decisions that they made to fund their education.

The Pew’s Survey of American Family Finances revealed:

[quote]”Fifty-three percent of white Gen X and millennial households reported housing debt, compared with just 24 percent of black and 35 percent of Hispanic households. Among those with mortgages, white households typically had $15,000 more than blacks and $2,000 more than Hispanics in home equity. Conversely, 44 percent of black Gen Xers and millennials owed money toward student loans, compared with just 35 percent of similar white households; in both racial groups, those holding such debt typically owed $20,000. One-quarter of young Hispanic households had student loan debt, typically $15,000.Despite the higher-than-average rate of student loan debt among young black Americans, it is not clear that this debt is fully building their human capital. Black Gen Xers and millennials who owe student debt in their own names are more likely than their white peers to be paying for a degree they did not complete (38 percent versus 26 percent). Furthermore, they are less likely to be paying for lucrative income-generating graduate degrees: More black and Hispanic Gen X and millennial student loan borrowers do not yet have a bachelor’s degree compared with their white peers (53 percent and 56 percent versus 41 percent, respectively).” [/quote]

This data shows that student loans have a grip on students of color that impacts their ability to get ahead in their lives. Student loan debt can be especially crippling if the borrower did not complete the degree that he/she set out to earn. This raises questions about student retention and graduation rates for students of color and the value of an education if borrowers cannot get ahead financially. This data also shows that there’s an opportunity for activists in the student loan forgiveness movement to reach out to Latino and Black borrowers to help build a movement for borrowers to find relief.

 

Photo credit: Student Loan by Lendingmemo.com

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