URBAN AGENDA: Congress to help non-performing student loan borrowers – Amsterdam News | Vette Leader

Before the federal student loan payment pause expires later this month, President Biden is expected to announce that he will use his executive authority to unilaterally cancel a certain amount of existing student loan debt per borrower.

Supporters of student debt relief have called on the President to scrap it Everyone federal debt for student loans, something he has signaled he would not do. Nonetheless, there is a case for a broad-based approach to student debt forgiveness to provide economic relief to Americans who are financially strained by reducing student loan debt at a time of rising inflation fears and tight budget budgets.

We will soon find out if there is the political will to act on student debt relief.

Meanwhile, the growing student loan crisis is threatening the financial security of millions of households, not just in New York but across the country. Every 28 seconds, a student loan borrower defaults on their payments. Studies show that student loans have different effects on low-income borrowers of color, particularly Black and Hispanic women. Findings from a new Community Service Society (CSS) report, Mitigating the Growing Impact of Student Loan Debt, confirm this.

The report, based on our annual Unheard third party Survey found 43 percent of Black women and 38 percent of Latina/x women have outstanding student loan debt, compared to just 27 percent of white women. Overall, women owe two-thirds of all student loan debt. However, black women are slower than their peers in paying off student loans and are more likely to struggle to meet essential expenses because of this debt. Default rates are also higher among black and brown borrowers

Of course, canceling student debt in any form would not help the next cohort of student loan borrowers. Without massive reforms to our higher education funding system and curbing the skyrocketing costs associated with acquiring post-secondary education, each new year will bring another cohort of borrowers. And each succeeding cohort will have to contend with the same predatory practices inherent in our credit service sector and the highly complex student loan repayment system that contributed to today’s $1.7 trillion student debt crisis.

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