Student Loan Payments Are Back: What Black Millennials Need to Know Now

After a long pause, federal student loan repayments are officially back, and for many Black millennials, the pressure is real. As bills begin to roll in, so does the financial anxiety that millions had temporarily shelved. But this isn’t just about repayments. It’s about power, policy, and protecting our future wealth.

Let’s break it down.

Over 42 million Americans hold federal student loans. According to Education Data Initiative, Black college graduates owe an average of $25,000 more than white graduates four years after graduation. And nearly 58% of Black borrowers expect to never be able to pay off their debt in full. This isn’t just a crisis, it’s a wealth trap.

Now, add to this the growing conversation around the proposed Project 2025 — a sweeping conservative policy playbook published by The Heritage Foundation. Among its 922 pages are proposals that could strip away key protections for borrowers, eliminate the Department of Education, and make repayment systems even harsher.

What does that mean? Simple: If implemented, these plans could erase the very policies that gave many Black borrowers a fighting chance, including income-driven repayment plans, forgiveness programs, and expanded Pell Grants.

Why This Hits Black Student-Loan Borrowers Harder

For Black millennials, student loans are not just about education, they’re often about access. Many of us are first-generation college students, pushed to “go further” because our parents couldn’t. But that pursuit of higher education came at a price: debt that outpaces our earnings, especially when systemic racism continues to undervalue our degrees in the job market.

And while loan payments were paused during the pandemic, interest has started accruing again, with many borrowers seeing higher monthly bills than ever.

3 Power Moves for the Moment

• Revisit Your Repayment Plan
  IDR (Income-Driven Repayment) plans are still available and can significantly reduce your monthly payments. Check if the SAVE Plan (Saving on a Valuable Education) works for your income.
• Know the Policy Players
  Stay informed about Project 2025 and similar proposals. These aren’t just political documents — they’re blueprints for your financial future. Vote accordingly.
• Build Wealth Anyway
  Loan repayment isn’t the end of your wealth journey. It’s a bump. Prioritize saving, investing, and multiple income streams. Your net worth is not limited by your loan balance.

Utilize resources and financial planning tools tailored to Black millennials to develop strategies for debt management and wealth building. Understanding the evolving student loan landscape is crucial for Black millennials striving for financial freedom. By staying informed and proactive, you can navigate these challenges and work towards economic empowerment.