MarketWatch, July 22, 2019: All the ways student debt exacerbates racial inequality — ‘it’s like landing in quicksand’
Student debt is often thought of as a generational issue, plaguing 20- and 30-somethings as they make their way into adulthood. And while it’s true that young adults are coping with levels of student debt rarely experienced by their parents and even older siblings, perhaps one of the biggest factors defining a borrower’s student loan experience is their race.
Understanding the experiences of borrowers of color is key to understanding the ways in which our student loan system isn’t living up to its promise to make higher education — and the benefits that come with it — accessible. While a college degree is an investment that pays off, on average, for students of color and black students, in particular, the risk that it won’t pay off is much higher.
The reasons why are complex, but broadly, they tie back to America’s history of systemic racism. That history has limited the resources black families have to pay for college, made it more likely that black students will attend colleges with limited resources and be targeted by predatory colleges, while still facing barriers to entering wealthy, elite higher education institutions. They’re also more likely to struggle to repay the debt after they leave school.
