In 2015, an organization called Demos released a report on minorities, student loan debt, and financial stress due to such debt. The results added another piece to the puzzle that shows minorities suffer from high student loans more than Caucasians do. According to the report, 81 percent of all African Americans who completed a four-year degree left college with debt, while 57 percent borrowed to complete their two-year degree. Caucasians tended to borrow less, with only 63 percent taking out loans for their bachelor's degree, and 43 percent needing to borrow for an associate's degree.
Because they are borrowing more, minority groups are also struggling more with the debt. A report released by Education Sector in 2007 showed that African Americas were about five times as likely to default on their loans, while Hispanics were about twice as likely. This hasn't changed, either. These figures were recently backed up by data compiled by the Washington Center for Equitable Growth, which showed that minority neighborhoods continued to have high default rates.
These figures have led to the National Consumer Law Center building a coalition. It is designed to help improve the way minorities use student loans and to see that the loans allow those in need to grow and improve their lifestyle through education, rather than go further into debt. The group has asked the Department of Education for information about minorities and student loans, but the department has said it does not track such information.
This article was provided by our partners at moneytips.com.
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