This Federal Report Highlights A Major Student Loan Crisis For African American Borrowers
The average African American 2003-04 student owed more than they originally borrowed, 12 years after graduating.
Pretty much every college graduate feels the burden of student loans, a burden that becomes much heavier as you enter post-grad studies. Recently, the U.S. Department of Education released its first-ever report with data detailing the long-term effects for student loan borrowers, and further specified by race and ethnicity.
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According to American Progress, the typical African American students who started school during the 2003-04 year accumulated more debt than they originally borrowed, 12 years after graduating. The report showed that nearly half of African American borrowers defaulted on their loans, with 75 percent dropping out of for-profit schools.
American Progress found five key findings from the report that needs to be highlighted. In addition to the previously mentioned default number and non-profit drop-out percentage, African Americans are more likely to borrow than their peers; the typical African American didn't progress well in paying back their loans; and completing a bachelor's degree didn't fare better for African Americans when it came to repayment.
Since the for-profit college market peaked years after the study started, recent numbers may even be worse than in the report. American Progress noted that a full analysis will need to be conducted to fully find a solution to this problem, as institutional racism is likely to play a part in the financial aid sector as well.
Hopefully, this thorough analysis can be implemented as soon as possible!