What Do Racial and Ethnic Wealth Gaps Mean for Student Loan Policy?
“Racial and ethnic disparities in wealth are well documented, with 2016 data showing the median white family having nearly 10 times as much wealth as the median black family. (The gap between white and Hispanic families is similar in size.) This means students of color tend to have fewer family assets to draw on for college, often leading them to choose between attending lower-priced institutions or taking on more debt. After leaving college, students of color are less likely to be able to lean on family members for financial support that might ease the burden of loan repayment.”