A 40% Boost in Black Wealth If Biden Decides To Cancel Student Debt

    According to Bloomberg News, the Biden government’s decision to allow for a moratorium on the payment of student loans has made way for the President to forego student loans up to an amount of $50,000 per person. If the President enacts the move, it will be of immense benefit to the millions of American students, particularly Black borrowers. 

    In June, a report from the Roosevelt Institute revealed if a debt of $50,000 towards student loans payment per person were waived off, it would instantly increase by 40% of what is known as Black wealth. According to the analysis, the Black borrowers at the bottom of net worth 10% would have approximately an additional $5000 forgiven compared to their white counterparts. 


    Forgiving student debt loans of amount $50,000 would aid in providing more benefit to the ones that enjoy lesser economic resources. This would also address the racial wealth gap. 

    Bloomberg News also reports that as per Education Data Initiative, collectively 43.2 million Americans hold $1.75 trillion related to student debt loans, and it was also seen that the Black students become graduates with more debt, and they also take a longer time to make payments for the same. As per an analysis of 2019 by the Center for American Progress, 32% of Black students had already fallen behind on their payments, even after six years of completing either two-year or four years in college. 

    The main reason that can be held responsible for the same is that the Black people in the United States have less wealth by seven times compared to their White counterparts, thereby making it cumbersome and difficult for them to pay off their debts even with a middle-class income. Loans have also been responsible for preventing the Black people from investing in businesses and buying homes.

    RELATED ARTICLES

    strategy for salaried individuals

    Why SIP is the best investment strategy for salaried individuals

    As a salaried individual, managing finances comes with several challenges. Fixed monthly income leaves little...
    A Full Range of Financial Services for Ukrainians in Toronto

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years....
    Make1m.com Millionaire Life

    Can You Really Get Rich Using Make1M.com Millionaire Life?

    In a technology in which digital entrepreneurship is booming, the dream of turning into a...
    Wheon.com finance tips

    Wheon.com Finance Tips: Expert Advice You Can Trust

    Wheon.com finance tips are supposed to be your go-to guide, but honestly, where do you...
    Seasonal Saving How to Time Your Purchases for Maximum Discounts

    Seasonal Saving: How to Time Your Purchases for Maximum Discounts

    Smart shoppers know that timing is everything when it comes to saving money on purchases....
    How much sum Assured should I opt for in my life insurance

    How much sum Assured should I opt for in my life insurance?

    However, simply purchasing life insurance is not enough. The objective is to have a substantial...

    MORE ARTICLES

    strategy for salaried individuals

    Why SIP is the best investment strategy for salaried individuals

    As a salaried individual, managing finances comes with several challenges. Fixed monthly income leaves little...
    Bappam TV

    Bappam TV: Your Telugu Entertainment Hub

    In this virtual age, online streaming platforms have emerged as a fundamental part of how...
    A Full Range of Financial Services for Ukrainians in Toronto

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years

    BCU Financial serving the Ukrainian community in Toronto, has been around for over 70 years....
    Simple Steps to Renew Your BLS Certification Online

    Simple Steps to Renew Your BLS Certification Online

    Maintaining certifications is essential to delivering the highest standard of healthcare. Keeping the certification up-to-date...
    Strengthening Cybersecurity with DSPM

    Strengthening Cybersecurity with DSPM, Vulnerability Management, and SecOps

    The modern landscape is dynamic, distributed, and increasingly driven by automation and adversarial AI. To...