- Free Consultation: (202) 448-5136 Tap Here To Call Us
Student Loan Forgiveness Could Narrow the Racial Wealth Gap
The racial wage gap is wider today than in it was in 1979. And according to this recent Washington Post article, student debt is exacerbating the gap. Student loans make it more difficult for to save money and accumulate assets. Targeted student loan forgiveness could narrow the racial wealth gap.
Education levels directly influence both economic opportunity and wealth creation. Earnings disparities between college and high school graduates accounted for at least 60% of the rise in wage inequality between 1980 and 2005. Not going to college is simply not an option for any young person aspiring to the middle class. Consequently, 43 million Americans across the racial and socioeconomic spectrum have taken out nearly $1.3 trillion in college loans.
The Consumer Financial Protection Bureau has also examined “the disproportionate impact of student debt on communities of color.” The CFPB specifically found that “student loan debt can trigger a financial domino effect that may prevent economic mobility.”
According to a Brandeis study cited in the Washington Post article, the median household wealth is $3,600 for young African American households. Compared that the median household wealth of just under $36,000 for young whites. Addressing the income gap will require increasing minority education quality at all levels, from primary to post-secondary.
Black Students Have a Lot More College Debt
While college education for African Americans is increasing, black households are also far more likely to have student debt. About 54% of young African Americans between the ages of 25 and 40 have student loans, compared to 39% of their white counterparts.
Student Loan Forgiveness: Pros and Cons
There are many, many critics of plans to lessen the enormous wealth gap that exists in America today. (“Putting the blame on the 1 percent is an easy excuse for those who have failed due to poor decision-making, poor planning, lack of skills, lack of drive, lack of sacrifice.”) Yet it is difficult to discern why a racial income gap exists for college graduates.
Even less understandable is why the gap should be allowed to exist if it can be ameliorated or eliminated altogether. A recent report found that if average black family wealth continues to grow at the same pace it has over the past three decades, it would take black families 228 years to amass the same amount of wealth white families have today. That is not acceptable. The feds should direct student loan forgiveness policies toward minorities to lessen the wealth gap.
The Solution: Increase Student Loan Forgiveness for Minorities
The Department of Education needs to do a better job targeting and promoting debt forgiveness programs toward minorities. The Department of Education offers several different types of income-based repayment programs. Generally, these programs allow for forgiveness after at least two decades of payments. The plans may be skewed toward graduate students, but legally these programs are available to all.
In addition to targeted programs, allowing student loans to be discharged in bankruptcy could dramatically narrow the racial wealth gap.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
