Study: Parent PLUS loans increase racial debt burdens

From Inside Higher Ed: “President Biden might cancel $10,000 of student debt, but civil rights advocates are worried that this figure is not enough to address core racial disparities seen in student debt burdens. A new study released Tuesday by the Century Foundation found that it is not just Black students who are hurt disproportionately by student debt, but also Black parents through federal Parent PLUS borrowing, a new finding on a federal program loan that has been mostly excluded from the student debt relief debate. … The Century Foundation study found that 42 percent of Black Parent PLUS borrowers are low income and low wealth, compared to 26 percent of Latino and 8 percent of white borrowers. As a result, Black borrowers struggle to repay such debt, further contributing to the racial wealth gap.”

View the full article from Inside Higher Ed.

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