President Biden Canceled Some Student Loan Debt, but Systemic Inequality Still Burdens Black Borrowers

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By Kimanzi Constable | August 29, 2022

When President Biden announced his administration would forgive $10,000 for borrowers making less than $125,000 annually, he effectively eliminated the student loans of 32% of all borrowers.

He also announced $20,000 in relief for those who received federal Pell grants, which are earmarked for low-income scholars, and extended the pause on student loan repayments until Dec. 31, 2022.

According to the Federal Reserve, the total student debt is estimated to be $1.75 trillion. Black students have to rely more on loans, and the average Black borrower still owes 95% of their balance 20 years later, according to the NAACP. While many borrowers are celebrating having their student loan debt forgiven, systemic inequality for Black borrowers still exists.

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