With the student loan moratorium set to end soon, advocates are calling on the president to cancel student loans once again. The move would not only eliminate up to $50,000 per borrower, but simultaneously bolster Black wealth by 40%.
Back in June, the Roosevelt Institute released a report that found canceling $50,000 per person would immediately boost Black wealth by 40% and that Black borrowers with the bottom 10% of net worth would see approximately $5,000 more forgiven than their white counterparts.
If Joe Biden moves to erase $50,000 per borrower, it "would provide more benefits to those with fewer economic resources and could play a critical role in addressing the racial wealth gap and building the Black middle class," the Institute wrote in a brief on its findings.
The immediate large boost in Black wealth makes sense given the wealth gap –– perpetuated by generations of racial oppression, disproportionate unemployment rates, and larger amounts of money Black borrowers take out to pay for school compared to other groups. For example, one study found that on average, Black women owe 22% more in student loans than white women.
"It's time for the Biden Administration to cancel $50,000 in student debt and give relief to people who are getting crushed," Sen. Elizabeth Warren wrote in a tweet Monday (December 20).
Rep. Alexandria Ocasio-Cortez called on Biden to "lean on his executive authority" to provide student loan relief, especially as inflation hits household budgets and the Build Back Better social safety net is stalled because of Joe Manchin –– who believes Americans are using government money to buy drugs.