How Student Debt Harms Black Borrowers’ Mental Health

New York

EdTrust–New York is a statewide education policy and advocacy organization focused first and foremost on doing right by New York’s children. Although many organizations speak up for the adults employed by schools and colleges, we advocate for students, especially those whose needs and potential are often overlooked.

West

EdTrust–West is committed to dismantling the racial and economic barriers embedded in the California education system. Through our research and advocacy, EdTrust-West engages diverse communities dedicated to education equity and justice and increases political and public will to build an education system where students of color and multilingual learners, especially those experiencing poverty, will thrive.

Massachusetts

The Education Trust team in Massachusetts convenes and supports the Massachusetts Education Equity Partnership (MEEP), a collective effort of more than 20 social justice, civil rights and education organizations from across the Commonwealth working together to promote educational equity for historically underserved students in our state’s schools.

Higher Education

Social, Emotional and Academic Development

How Student Debt Harms Black Borrowers’ Mental Health

Approximately 45 million Americans carry $1.7 trillion in student loan debt, but the financial challenges facing Black borrowers are…

July 28, 2022 by Victoria Jackson, Jalil B. Mustaffa, Ph.D.

Sad black girl sitting alone on the floor, hugging her knees

Approximately 45 million Americans carry $1.7 trillion in student loan debt, but the financial challenges facing Black borrowers are numerous. Black students are more likely to borrow, borrow more, and are more likely to struggle with repayment than their peers, because they collectively have fewer resources due to the generational and ongoing effects of structural racism. This debt burden has far-reaching financial consequences, and research also shows that student debt contributes to poor mental health. In fact, the toll of student debt on people’s mental health can be just as devastating as the financial harm it can cause.

Drawing on survey responses from our National Black Student Debt Study, this brief describes how student debt has affected Black borrowers financially and mentally—with 64% of survey participants reporting that student debt negatively impacted their mental health.

Download the Full Brief

Recommendations

Student debt is growing, as is the mental health crisis among Black borrowers. But while the situation is dire, it’s also a byproduct of failed and intentionally racist policies that go back generations, which means it can be solved by better public policies, like those listed below.

More than 80% of the participants in the “Jim Crow Debt” study think the federal government should cancel all student debt, and policymakers would be wise to listen to them and help ease their debt burden. The Education Trust supports canceling at least $50,000 of federal student debt per borrower and opposes limiting eligibility for cancellation by income, loan type, or degree level (e.g., undergraduate versus graduate degree).
In addition to total broad-based debt cancellation, the Biden administration should make significant improvements to income-driven repayment (IDR) plans to make monthly payments more affordable, reduce negative amortization, ensure reliable loan servicing, and shorten the time-to-forgiveness window.
To make college more affordable, Congress should double the Pell Grant and create federal-state partnerships to make public college debt-free. A higher education should be the key to a better future, instead of a lifetime debt sentence. It’s up to the Biden administration and Congress to end the student debt crisis and make college affordable for future students.

Who We Are

Midwest

New York

Tennessee

West

Louisiana

Texas

Washington

Massachusetts

How Student Debt Harms Black Borrowers’ Mental Health

Recommendations

How Student Debt Harms Black Borrowers’ Mental Health

Recommendations

Related

Parent PLUS Loans Are a Double-Edged Sword for Black Borrowers

Income-Driven Repayment Plans Fail Black Borrowers

How Black Women Experience Student Debt