Warren: Latest jobs report shows need for universal child care
So let me start by pointing out that what we’re talking about is just canceling $ 50,000 in student loans, not 100%. 100 student loans.
The debts of plastic surgeons and fancy lawyers are not covered here. But in that $ 50,000, let’s be clear, 40% of that is $ 50,000. Eighty percent of those with student debt do not have a college diploma. In other words, they are having a hard time paying off their student loan debt. Why? Because they tried. They tried, but then had a baby, couldn’t handle three jobs and go to school.
Someone got sick. The transport broke down. And they are now struggling with student loans on what you earn as a high school graduate. In addition, we have a huge problem of the wealth gap between blacks and whites in this country. And the problem is exacerbated by student debt. African Americans have to borrow more money to go to school, more money to stay in school, and have a harder time paying.
Just a statistic on this. The typical white borrower, 20 years after borrowing a student – on student loan debt, he owes 5% of the original amount he borrowed. The end is in sight. The typical black borrower owns 95 percent.
By canceling student loan debt, we can reduce the black-white wealth gap for people with student loan debt by 25 points. This is the most important thing President Biden can do on his own to help bring some fairness and racial equality to this country economically.