Apr 4, 2021 - Politics & Policy

Possible loan forgiveness would benefit Latino students

Students at a graduation ceremony with the American flag in the background.
An American flag flies above a building as students at Pasadena City College participate in a graduation ceremony in June 2019. Photo: Photo by Robyn Beck / AFP) (Photo credit should read ROBYN BECK/AFP via Getty Images)

The Education Department has suspended the collection of certain federal student loans that borrowers defaulted on, while Democratic senators insist that the relief bill has a provision that could facilitate canceling many more student loan debts through a tax break.

Why it matters: Latinos tend to have more problems repaying school debt, and in the current situation face growing stress and anxiety before even accounting for repayments.

By the numbers: Since before the pandemic, about 23% of Hispanic college grads who had taken out loans for tuition and school expenses were behind on their payments, in contrast with 6% of white student borrowers, per Federal Reserve data.

  • Estimates also show that 12 years after graduation, on average, white borrowers had been able to pay off 90% of their debts, while Latino student borrowers still owed around 80% of what they took out to afford tuition.

This story first appeared in Axios Latino, a weekly collaboration between Axios and Noticias Telemundo. Sign up here.

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