Black women and the student loan burden

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Jun 09, 2023 View in browser   By Sophie Gardner and Leah Clark Presented by POLITICO illustration/Photos by iStock Happy Friday. Thanks to Leah, who is part of this year’s POLITICO Journalism Institute, for helping me report this week! Give her a follow: @leahessclark. It’s been over three years since the CARES Act halted federal student loan payments as the Covid-19 pandemic catapulted many borrowers into financial uncertainty. For the first time, those payments seem certain to resume in the coming months. Some demographics will feel it more than others. To be clear, federal student loan payments have been slated to resume a host of times before: former President Donald Trump extended the payment halt twice, and President Joe Biden followed suit, extending it six times. But that’s not an option anymore, after Congress passed their bipartisan debt ceiling deal, which bars Biden from extending the pause again. The bill ends the ongoing pause on monthly payments and interest 60 days after June 30, which is Aug. 29. That date might loom more ominously for the group most burdened by student debt: Black women. In general, women are disproportionately affected, holding nearly two thirds of the country’s outstanding student debt. But Black women face even starker disparities. On average, women graduate owing almost $22,000 in student debt, while that number for men is $18,880. Black women graduate with an average of $37,558 in debt. Why are the differences so extreme? “When we specifically talk about how black women experience student loan debt, you cannot have this conversation without addressing the racial wage gap, and the racial wealth gap,” said Brittani Williams, a senior policy analyst at The Education Trust who has studied disparities in student debt. The racial wealth gap refers to wealth disparities in the Black community as a whole. As a result, Black families might be less able to help pay for their children’s higher education, meaning more loans. The racial wage gap refers to pay disparities: Once Black women graduate, they’re likely to make less than their white counterparts. The median wage for Black women in the U.S. is $36,303 per year, compared to $57,005 annually for white, non-Hispanic men. It’s not for lack of qualifications: Black women, as a demographic, are highly educated, among the most educated in the nation. But more degrees often mean more loans, too. “You look at the advanced degree as a way to lift yourself up and maybe even be brought to a level where you're making just as much money as your peers,” said Tisa Silver Canady, Founder and Director of the Maryland Center for Collegiate Financial Wellness. “But the expense of that endeavor leads to being in an even deeper financial hole, especially if promotional opportunities do not come through.” “Black women are getting these degrees and taking on debt, but they aren't necessarily gaining the benefits of those higher degrees,” said Gloria L. Blackwell, the CEO of the American Association of University Women. Blackwell offered a few more factors that she says contribute to the disproportionate loan burden. She noted that Black women are also more likely to be first generation college students and to attend for-profit colleges than their white counterparts. “All of these things unfortunately add up to be what is a perfect storm of economic inequity for Black women,” Blackwell told Women Rule. These disparities started to garner more national attention near the end of last summer, when Biden first released his student debt relief plan – which would have forgiven up to $20,000 for individual borrowers – and which is now on shaky ground, thanks to a pending Supreme Court case. Biden v. Nebraska, the case that will likely determine the future of Biden’s plan, is slated to be decided in the next few weeks. Congress also recently delivered the plan a symbolic punch, passing a bill through both houses that would cancel the relief. Biden vetoed that bill on Wednesday. “I think that until we have a decision from SCOTUS, loan forgiveness is still on the table for now,” Williams said. If the Supreme Court does decide to rule against Biden’s plan, Canady, who advises students who are trying to dig their way out from under student loan debt, may have some extra work on her hands. And while financial disparities are easy to measure, she says that student debt sometimes comes with a less tangible consequence: impacts on mental health. “Sometimes it's so severe that when the topic of student loans is mentioned, people shut down – they don't really want to talk about it,” Canady said. Williams is worried about the effect that loans starting up will have on borrowers who have gotten used to worrying less about their debt during the pause: “I think that this is going to create a lot of stress and anxiety for borrowers, particularly Black borrowers.” Williams, who currently has student loans herself, says she’ll also be looking to the Federal Student Aid office to provide guidance for borrowers during the transition. “I'm a Black woman and I'm a student loan borrower. The onus is not just on us.”   A message from the American Council of Life Insurers: Families face no shortage of financial challenges, and the pressures can be especially great for women due to the compounding effects of caregiving responsibilities and pay gaps. Life insurers are at work to help people absorb financial shocks through all stages of life and protect access to information and options that help build financial security for more families. Learn more here.   POLITICO Special Report Ines Bel Aiba/AFP via Getty Images “‘Why the hell are we doing this?’ McCarthy’s fractured leadership team faces new abortion tension,” by Olivia Beavers and Sarah Ferris for POLITICO: “Behind closed doors on Wednesday, McCarthy’s No. 2 and No. 3 briefed about a dozen Republicans — mostly battleground-seat members — on their plan to take up two bills next week: Rep. Andrew Clyde’s (R-Ga.) bid to nix a Biden administration gun regulation and a separate proposal bill to strengthen limits on taxpayer funding for abortion.” “Republicans press Wisconsin congressman to take on Tammy Baldwin,” by Ally Mutnick for POLITICO: “Senate GOP recruiters are making a renewed push to lure Rep. Mike Gallagher into Wisconsin’s Senate race. “Gallagher, a four-term member who represents the northeastern portion of the state, is considering a run against Democratic Sen. Tammy Baldwin. National Republicans have concluded he would be their strongest possible nominee and are eagerly courting him.” “New Jersey aims to be a safe haven for abortion. Crisis pregnancy centers stand in the way, leaders say,” by Caroline Petrow-Cohen for POLITICO. Number of the Week Read more here. MUST READS Joe Raedle/Getty Images “Women won’t achieve pay parity until 2056: report” by Sarah Fortinsky for The Hill: “Women with full-time, year-round work will not achieve pay parity with men until 2056, if trends continue as they have since 1967, according to a report released Thursday from the Center for American Progress (CAP). “In anticipation of the 60th anniversary of the 1963 Equal Pay Act becoming law, CAP — a left-leaning think tank in Washington, D.C., — published an analysis seeking to measure the law’s impact by tracking trends in employment and wages since its passage. The law sought to protect workers from pay discrimination based on sex.” “Hundreds of White women gather at Colorado Capitol after plea from women of color to use their ‘privilege’ to demand action on gun violence,” by Chandelis Duster for CNN. “Nikki Haley connects teen girls’ suicidal ideation to transgender girls in locker rooms during CNN town hall,” by Eric Bradner for CNN: “The Centers for Disease Control and Prevention in February released an alarming report that found nearly 1 in 3 teen girls seriously considered attempting suicide in 2021, and that 3 in 5 teen girls “felt persistently sad or hopeless” – double the rate found among boys. However, that study made no connection between suicidal ideation and the existence of transgender youths or their participation on sports teams.” “Pregnant people are at ‘greater risk’ in states hit hard by wildfire smoke, air pollution, new report shows,” by Jessica Kutz for the 19th: “This exposure to wildfire smoke and other kinds of particulate matter air pollution, which can be caused by diesel engines and coal-burning power plants, is increasingly being linked to poor health outcomes for pregnant people and their babies. The American Lung Association (ALA) pointed out that fact for the first time in its annual State of the Air report, released Thursday, which analyzed air pollution data for the years 2018-2020. Fires in the West, according to the report, were a large contributor.” “Could access to child care be the key to helping parents clear arrest warrants?” by Barbara Rodriguez for the 19th.   A message from the American Council of Life Insurers: Anxiety regarding Americans’ financial future not only impacts their spending habits but physical and mental health as well. For example, 33% of women say their financial anxiety is causing them to feel stuck, according to recent polling from HarrisX. America’s life insurers are committed to working with lawmakers to address the anxieties people are facing and to build financial resiliency for working families. Everyone deserves access to the tools that will help them live with more financial certainty. Learn more here.   Quote of the Week Read more here. Transitions Johanny Adames is now press secretary for higher ed for the Office of Communications and Outreach at the Department of Education. She most recently was communications director and senior adviser at the Latino Victory Project. Ally Soifer O’Connell has been detailed to be senior adviser for scheduling and advance for first lady Jill Biden. She most recently was deputy director of scheduling and advance at DHS. … Hila Levy is now director for science, technology and workforce strategy at the NSC. She most recently was assistant director for ocean, polar and national security at the White House Office of Science and Technology Policy. … … Sarita Williams is now press secretary for Sen. Ben Cardin (D-Md.). She previously was comms director for Maryland House Speaker Adrienne Jones. (H/t Playbook.)   Follow us on Twitter Sophie Gardner @sophie_gardnerj   Follow us

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