Disproportionate Impact: The Effect of Student Loan Collections on Black Borrowers

Mark your calendars for May 5, as the Department of Education will initiate collection procedures on over five million individuals with defaulted federal student loans, signaling potential financial distress. Augustus Mays from EdTrust emphasizes that this punitive measure neglects deeper systemic issues, such as rising educational costs and labor market disparities. With Black borrowers facing the brunt of these penalties, experts warn that such actions will exacerbate the racial wealth gap and hinder future educational aspirations, particularly for Black women.