The crushing weight of student loans is a silent crisis in Black communities, stalling wealth-building and economic stability for generations.

In the American imagination, student loans are seen as a burden, yes, but also a necessary step toward prosperity. College degrees unlock doors to higher-paying jobs, broader networks, and economic mobility. But for Black communities, the narrative isn't relatively so straightforward.

While student debt is often framed as a millennial issue, its consequences ripple far deeper and wider for Black families. According to the Brookings Institution, Black college graduates owe an average of $25,000 more in student loan debt than their white counterparts four years after graduation. And it’s not just a matter of owing more—Black borrowers are also more likely to default on their loans, with nearly half defaulting within 12 years, compared to just 20% of white graduates.

A Legacy of Financial Entrapment

The weight of student debt often extends beyond the borrower. Black families are more likely to take on Parent PLUS Loans, a federal program that allows parents to borrow money to fund their children’s education. These loans come with higher interest rates and fewer protections than standard federal student loans, creating a cycle of debt that trickles up and down generations. 

For many Black families, student loan debt is not just a financial inconvenience—it’s a barrier to building wealth. Homeownership, one of the most reliable paths to wealth accumulation, becomes less attainable when significant portions of income are funneled toward loan payments. A 2022 Urban Institute report found that the average Black borrower with student debt is 40% less likely to own a home than their white peers.

Compounded with the racial wealth gap, this debt makes it nearly impossible for many Black Americans to gain economic footing. The Federal Reserve reported that the median net worth of a Black family is $24,100, compared to $188,200 for white families. The disparity is glaring, and student debt only widens the divide.

The False Promise of Forgiveness

For years, student loan forgiveness has been dangled as a potential remedy. But the execution has fallen far short. Programs like Public Service Loan Forgiveness (PSLF), which promises loan cancellation for borrowers working in public service for 10 years, have historically denied more than 98% of applicants due to bureaucratic red tape and narrow eligibility requirements.

Black borrowers are disproportionately employed in public sector jobs—teaching, government work, and social services—yet they are less likely to see relief from programs intended to alleviate their debt.

The Biden Administration’s proposed changes, including the recently announced Fresh Start Initiative, aim to address these disparities. However, his good-faith measures were thwarted by the conservative right and effectively upended any real traction Black borrowers could’ve enjoyed. Without structural shifts in loan policies and broader economic investment in Black communities, these efforts may only scratch the surface.

Why Aren’t We Talking About This?

The silence around Black student debt is deafening. Discussions of financial wellness, economic mobility, and even reparative justice often bypass the role that crushing educational debt plays in locking Black families out of wealth-building opportunities. While some are beginning to address the issue, it’s essentially treated as a subcategory of millennial woes, not the full-fledged economic crisis it truly is for Black Americans.

When we talk about student debt, we have to name it for what it is: a barrier to Black wealth. And until we address this head-on, we’re not just failing Black graduates—we’re failing entire generations.