So, let me start by pointing out that what we are talking about is only canceling $50,000 of student loan debt, not 100 percent of student loan debt.
The debts of the plastic surgeons and the fancy lawyers, that is not covered here. But in that $50,000, let’s make clear, 40 percent of those who are carrying student loan debt have no college diploma. In other words, they’re struggling to pay off student loan debt. Why? Because they tried. They tried, but then had a baby, couldn’t manage three jobs and going to school.
Somebody got sick. Transportation broke down. And they are now dealing with student loan debt on what you make as a high school graduate. Also, we have a huge Black-white wealth gap problem in this country. And the problem is exacerbated by student loan debt. African Americans have to borrow more money to go to school, more money to stay in school, and have a harder time paying it off.
Just one stat on this. The typical white borrower, 20 years after they have borrowed student — on student loan debt, they owe 5 percent of their original amount that they borrowed. The end is in sight. The typical Black borrower owns 95 percent.
By canceling student loan debt, we can shrink the Black-white wealth gap for people with student loan debt by 25 points. This is the single biggest thing that President Biden could do all by himself to help bring some equity and racial equality economically to this country.