PHOTO | TROY HULL

According to the Joint Center for Political and Economic Studies, 44 million Americans owe a collective $1.7 trillion in student loan debt disproportionately impacts Black borrowers, who owe on average $52,726, By comparison, whites owe an average of $28,006.

Since 2012, Michael Madrey has paid over $10,000 in federal student loans to settle his $30,000 debt.

Today, the UNC Charlotte graduate’s balance is $47,302 due to high-interest rates. Madrey is among millions of college graduates with outstanding student loan debt, however; thanks to an executive order by President Joe Biden, $20,000 off his balance will be forgiven.

On Aug. 24, Biden announced he will forgive $10,000 of student loan debt for borrowers who earn less than $125,000 as individual tax filers and $20,000 for Pell Grant recipients. Additionally, the Biden administration will extend the federal student loan payment pause through Dec. 3. The announcement came as a relief for borrowers who have struggled to pay back loans.

“I think that this is going to help a lot of people, but it won’t help people who owe $50,000 or people who are obtaining their masters or PhDs without qualifying for scholarships,” said Madrey, who earned a degree in business administration.

According to the Joint Center for Political and Economic Students, about 44 million borrowers owe a collective amount of $1.7 trillion in federal student loan debt. Though this affects everybody, Black and Hispanic borrowers are proven to owe more, putting them in a bigger economic burden upon repayment.

Biden’s executive order “will bring wealth-building opportunities to struggling borrowers who have been crippled by student loan debt, especially low-wealth individuals, women and people of color — who were also disproportionately affected by the burdens of an unforgiving public health crisis,” said Jaylon Herbin, outreach associate and policy manager at the Durham-based Center for Responsible Lending.

Over the years, Madrey has paid a little over $100 a month towards his student loans thanks to the income-based repayment program. Although he admits cancellation will take a big chunk out of his obligation, Madrey said it will only alleviate the high-interest rates.

“I am sure this will help many people, but this is just bare minimum legislation,” he said. “This just puts a Band-Aid in a gushing wound. It is not solving the main problem at hand. “The main problem is the fact that politicians aren’t holding these predatory loan services accountable for going after low-income people, knowing they will never be able to pay these loans back.”

Madrey isn’t the only one who feels this way.

Although debt cancellation helps lower-income borrowers, Jessica Anderson, executive director of Heritage Action for America, a conservative policy advocacy organization, said loan forgiveness is an election year gimmick that will benefit the wealthy elite.

“With the wealthiest 40% of borrowers holding 60% of all loan debt, this announcement is an insult to middle- and working-class Americans who either did not attend college or responsibly paid off their loans,” she said.

Like Madrey, Anderson pointed out that forgiveness will encourage more debt and will not solve the problems of rising tuition costs. She also contends forgiveness will ultimately cost taxpayers.

“By delaying student loan payments throughout the pandemic, the Biden administration has already lost taxpayers $130 billion due to missed payments and accrued interest,” Anderson said. “Now, the Penn Wharton Budget model estimates that this debt ‘forgiveness’ plan could cost roughly $300 billion.”

According to Brookings Institution, Black borrowers owe an average of $52,726 more in student loan debt compared to $28,006 whites owe.

Though Biden canceled nearly $32 billion for 1.6 million borrowers, some Black advocates of student debt forgiveness say all federally backed loans should be forgiven.

“I think Biden's announcement was for the general public,” said Dasha Glover, a sixth-grade teacher at Quail Hollow Middle School. “I don’t think he was thinking of the Black community or any other POC community. He was just trying to approve it to help get his agenda across. He promised loan forgiveness and he gave it.”

Glover, a 2018 Johnson C. Smith University graduate who has a master’s degree in elementary education from Queens University of Charlotte, feels Biden should increase forgiveness for borrowers in low-earning careers.

“It is nice to be forgiven a bit of money and being a teacher, I will be forgiven a bit more, but my loans are high between my bachelor's and master's,” she said. “The minimum wage in North Carolina isn’t enough for me to keep up with loan payments when they resume and my other basic expenses.”

Glover, who has accumulated over $100,000 of student loan debt, has yet to make any payments as she pursues a doctoral degree at Gardner-Webb University. Though she is happy about the additional forgiveness, Glover is concerned about the financial burden she faces.

“It’s hard to think about because I kept earning more credentials to provide the best education for my students and $20,000 doesn’t cut it,” she said. “Neither will the future loan forgiveness I will receive for being in education, which is an estimate of $10,000, last time I checked.”

U.S. Rep. Alma Adams, one of the lead sponsors of Biden's student loan resolution during his campaign, supports the forgiveness plan.

“I am overjoyed that millions of students and borrowers can breathe a little easier today,” the Charlotte Democrat said in a statement. “As a college professor for 40 years, I know how hard students and families struggle to pay for higher education. So, we must remember the purpose of education is to open doors, not close them.”

Adams also shared this must not be the last step in relieving student loan debt and the administration must use every means possible to lift the burden off American families.

“As long as the debt is too damn high, we still have work to do in Congress,” she said.

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