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Women of color more likely to borrow, carry higher amounts of loan debt

San Francisco (KGO)-International Women’s Day and we Weekly series About everyday heroes in our lives. “Our America: Women’s Advances” It features stories about how women are breaking down barriers and overcoming challenges. One of the most serious struggles is the student loan debt crisis. This has a disproportionate impact on women who ow two-thirds of the student debt of over $ 1.5 trillion that Americans ow.

Student loan debt can affect credit, delay home ownership, postpone an individual starting a family, and hinder the creation of intergenerational wealth.

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However, this issue especially affects colored women who are more likely to use student loans to raise education funding and are more likely to bear student debt on graduation.

For many college graduates, the current suspension of federal student loan payments until September was a lifeline.

The Trump administration will suspend federal student loan payments, suspend default loan collections, and temporarily reduce interest to 0% in response to pandemics in March 2020. I instructed.

On the first day of his inauguration, the Biden administration extended emergency relief measures until September.

“It’s a big number that I don’t have in my account, but I have to repay it somehow,” said Ayana Morgan Woodard, a graduate of Tuskegee University who has a student loan of $ 30,000. I will.

“It was probably last month that it was officially hit like monetary value,” said Reina Galai Solis, a graduate of the University of California, Santa Cruz, who has a $ 15,000 loan debt. I had to actually start paying. “

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The feeling of being drowned in a student loan debt tsunami is familiar to many black and Latina women.

Women, especially black women, tend to graduate from student loan debt and have a hard time paying back.

On average, women graduate $ 2,700 more in student loan debt than men, according to the American Association of University Women.

According to AAUW, the wage gap between men and women makes repayment of these loans even more difficult. Black women take home for $ 1 compared to white men for 61 cents, and Latin women for 53 cents.

“This is certainly a matter of social justice, also known as a matter of racial equality,” said Christopher Nerm, Deputy Director of Research and Policy at Education Trust West.

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Education Trust West is a California-based, Washington, DC-based Education Trust office that advocates changes in education policy to better serve colored and low-income students nationwide. It is a group.

Education Trust West is just one of the education policy groups that requires Biden Administration to fully exempt student loans. This is what Nellum calls a “permanent suspension” of payments.

“Magic numbers allow it all, so you don’t have to worry about student loan debt again,” Nerm said.

But just last month, President Biden said he wouldn’t allow all of his student loan debt at CNN Town Hall, or even $ 50,000.

“I’m ready to cancel my $ 10,000 debt, but I won’t cancel $ 50,000,” Biden told the audience.

Biden has proposed to reduce student loan debt by $ 10,000 in the course of the campaign.

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Top Democrats in Congress have urged the administration to allow $ 50,000 worth of federal student loan debt to all borrowers.

Senator Chuck Schumer, Senator Elizabeth Warren, Senator Ayanna Pressley, Alma Adams, Ilhan Omar, and Mondea Jones approved a resolution last month to revoke the debt of tens of thousands of students by executive order.

“Looking at the numbers, it would be really really hard to actually pay $ 300 with a $ 30,000 loan. You need a place to live. You need food. You have to pay utility bills. Cars and gas. You have to pay, “said Morgan Woodward.

If President Biden allows $ 10,000 in federal student loan debt per borrower, that might help some, but it’s a big blow to colored women who have been disproportionately affected by the debt crisis. There is a possibility.

Black women who borrowed money to raise money for education graduated with an average student loan of $ 37,000.

By comparison, according to AAUW, white men who needed to borrow money to raise education graduated with an average of $ 29,000 in debt.

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Nerm said that some student loan debt forgiveness is fair to black and brown women who often owe more to get a high degree just because they are hired for the same job as a less educated man. He said it was just the first step in achieving good results.

“This is not about individuals making bad decisions. These individuals make very rational decisions about getting a college education. We can systematically support them. I couldn’t, “Nellum said.

Morgan-Woodard and Solis hope that permanent relief is in their future.

“I don’t want to buy a house. I don’t think much about buying a car of my name. I have a loan and I may have to repay it. It gets in the way.” Told.

“The deciding factor in someone’s education should not be their finances,” Solis said.

For other policy solutions, EdTrust West advocates doubling Pell Grant’s federal funding. Pell Grant is a subsidy provided by the federal government to students who indicate their need.

The group also requires all students to complete a free application for federal student assistance before graduating from high school to ensure they don’t miss free dollars that they may not consider eligible. I am promoting that.

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Women of color more likely to borrow, carry higher amounts of loan debt Source link Women of color more likely to borrow, carry higher amounts of loan debt

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