Jayla Hill

Being Black and being educated in America is often seen as a triumph, but it comes with a price. Black students borrow more from college than their peers, which means it will take them longer to pay them back, which still puts them in a category of financial stress. According to the Brookings Institution, Black graduates owe, on average, $25,000 more in student loan debt than their white counterparts. Then, four years after graduation, that number tripled. 

Why does generational wealth play a role? Black families hold just 1/10th of the wealth of white families, which means that education is also financed with heavy borrowing. Many Black graduates are the first in their families to attend college and graduate; they are the first to receive higher incomes, but also the first to help out their parents and send siblings to college as well. Even with degrees, Black professionals face wage gaps. On average, Black workers with a bachelor’s degree earn less on average than white workers with just a high school diploma. That means higher debt, lower income, and a longer road to financial stability.

So, yes, education is power, but for many Black students, it comes with a high cost. Most students aren’t even aware of the type of student loans they have, which also contributes to their debt. Most students’ loan debt comes directly from Direct Subsidized loans, which is where the government pays interest while you attend school. Then you have unsubsidized loans, and this interest builds immediately. Many Black students also rely on the Parent Plus loans, which carry higher interest rates and fewer protections.