The Continued Student Loan Crisis for Black Borrowers

Autor/in	Miller, Ben
Institution	Center for American Progress
Titel	The Continued Student Loan Crisis for Black Borrowers
Quelle	(2019), (9 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Student Loan Programs; Educational Finance; African American Students; College Students; Loan Default; Racial Differences; Ethnicity; Loan Repayment; Postsecondary Education; White Students; Hispanic American Students; Public Colleges; Private Colleges; Two Year Colleges; Proprietary Schools; Nonprofit Organizations; Bachelors Degrees; Income; Associate Degrees; Educational Certificates; Beginning Postsecondary Students Longitudinal Study + Suchen Sie Ihr Suchwort? Bildungsfonds; African Americans; Student; Students; Afroamerikaner; Schüler; Schülerin; Studentin; Collegestudent; Schuldnerverzug; Rassenunterschied; Ethnizität; Post-secondary education; Tertiäre Bildung; Hispanic; Hispanic Americans; Hispanoamerikaner; Privathochschule; Nonprofit-Organisation; 'Bachelor''s degrees'; Bachelor-Studiengang; Einkommen; Bildungsabschluss; Schulzeugnis
Abstract	In 2017, the U.S. Department of Education released groundbreaking data showing that half of Black or African American borrowers who first entered college in the 2003-04 academic year defaulted on their student loans within 12 years. New federal data released this fall show that these numbers have not improved: Black or African American borrowers who started college in 2011-12, almost a decade later, have continued to face high default rates. The data come from the latest update to the Beginning Postsecondary Students Longitudinal Study (BPS). This study tracks students who first entered college in the 2011-12 academic year for six years, through 2017. The data add a significant new element to policymakers and researchers' understanding of student loan repayment. This is the first time a U.S. Department of Education longitudinal study tracked undergraduate students who began college after 2007, when Congress started creating more generous income-driven repayment (IDR) plans. Thus far, IDR is the main solution that policymakers have devised to help struggling borrowers. These plans reduce monthly payments by capping them at a set share of income. The BPS data show that roughly one-fifth of borrowers in repayment at the end of the six-year tracking period were using IDR. While differences in the overall usage of IDR by race are small, one-third of Black or African American borrowers in repayment in 2017 with a bachelor's degree were using IDR, a much higher rate than other borrowers with the same level of education. Continued high default rates, despite the use of IDR, suggest either that outcomes would be much worse without it or that there must be other solutions to better serve borrowers most at risk of default. Unfortunately, the data cannot indicate which hypothesis is correct. This report provides a closer look at what the new data can tell about default and repayment, especially for Black borrowers. (ERIC).
Anmerkungen	Center for American Progress. 1333 H Street NW 10th Floor, Washington, DC 20005. Tel: 202-682-1611; Web site: http://www.americanprogress.org
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2024/1/01