A recent study highlights significant disparities in student debt, with Black graduates shouldering the heaviest burden due to factors like limited generational wealth, credit challenges, and greater financial needs leading to larger loans.
CHARLOTTE, N.C. — Fresh data indicates a widening disparity between individuals’ incomes and their educational debt, with Black students facing disproportionate financial challenges.
Investopedia, a financial media outlet, examined research on student loan debt across racial groups based on a survey of consumer finances conducted triennially.
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Researchers attribute these disparities, particularly among Black and other minority borrowers, to the absence of intergenerational assets, credit constraints, unequal compensation in the workforce, and underinvestment in education. Prior to delving into the statistics, Investopedia noted that non-white employees are generally paid less than their white counterparts, even when performing identical roles.
Moreover, Black, Hispanic, and Native American students typically face higher unmet financial requirements, resulting in increased student loan obligations to cover educational expenses. These groups also encounter difficulties in remaining enrolled in educational programs.
In terms of figures, Black borrowers secured the highest average federal student loan amount in 2022, averaging nearly $53,000 per borrower. In contrast, Hispanic borrowers borrowed an average of $26,000 in student loans.
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