Canceling student debt could close the racial wealth gap

[bluewater]

Warren and Sanders say canceling student debt could help close the racial wealth gap for families. This startling graph shows they might be right.

The US might need to look to the student-debt crisis to address racial inequality.
Americans are currently saddled with $1.5 trillion worth of student-loan debt, and the total amount of debt young people owe is the highest since immediately before the 2008 financial crisis.

Democratic presidential contenders Bernie Sanders and Elizabeth Warren both released plans that would eliminate the debt entirely. Their campaigns have said canceling student debt would help black and brown families much more than white ones.

The crisis has hit minority communities worse than white families on average. Black graduates default on their loans (meaning they do not make a payment within 270 days) at five times the rate of white graduates, and graduates from historically black colleges have 32% more debt than other students.

https://www.businessinsider.com/how-eliminating-student-debt-would-close-the-racial-wealth-gap-2019-6

[LibFarmer]

1. Why not also cancel auto loans, mortgages and credit card debt?

They also create a racial wealth gap.

Another couple of trillion in spending can't hurt.

[George II]

2. I know someone who owes his bookie a few thousand bucks, can we get that included too?

[LibFarmer]

4. Why not? Add another trillion

[UncleTomsEvilBrother]

7. Minimizing...

...and trivializing the pay gap is not part of Biden's platform, right? Seems that at least one of his supporters thinks it should be ridiculed with a sarcastic response.

[George II]

8. What will canceling student debt do to solve the pay gap problem?

[UncleTomsEvilBrother]

9. You should...

...read the article before you respond with frat boy sarcasm, perhaps?

[George II]

17. Read posts #7 and#16. "Quips" indeed.

[George II]

18. You're the one who brought up pay gap, sir, not me.

What is "frat boy sarcasm"? When I was in college I was there to learn and study.

[George II]

16. I was replying to someone else's post. Did you even read that? Let me help you out....

The post I responded to said:

Minimizing...

...and trivializing the pay gap is not part of Biden's platform, right? Seems that at least one of his supporters thinks it should be ridiculed with a sarcastic response.

Now, what were you saying?

"Honestly. I am at a loss for words.

"

[bluewater]

19. I will say this, you are right, I misfollowed the thread.

I apologize for my mistake and will delete the mistaken posts.

Apologizing for and correcting mistakes on the forum is very important.

[George II]

20. .

Thanks.

[calguy]

3. Cancelling student is just one.more issue

that will not fly in the general election. Refinancing at a much lower interest rate sounds good to me. But cancelling a person's debt? Why do we keep giving republicans more ammunition? Can I get my mortgage debt cancelled while you're at it?

[LibFarmer]

5. Someone has to make naive college kids attend rallies

and cheer the candidate's name while thinking he/she is the only savior and the lifelong Democrats who have actually worked on the issue are all corrupt or ineffective.

[George II]

6. Refinancing makes the most sense. We see people with large student debt that are making...

Last edited Sat Jul 6, 2019, 03:11 PM - Edit history (1)

...more in one year than their debt. That they don't pay off their debt quicker is baffling.

We bought our first house in 2005 with a 30-year $190K mortgage. We worked very hard for years and wound up paying it off in 2016, nineteen years early. We didn't ask anyone to cancel our mortgage.

[madville]

14. Eventually all these people defaulting on student loans will pay them back

Their Social Security can be garnished up to 15% to pay back federal student loans.

I blame the availability of student loans for this problem in the first place, they also caused tuition rates to skyrocket with all the easy access to money.

[intheflow]

15. I want student debt cancelled NOW! ...but it's not going to close the racial wealth gap.

If we know anything about whiteness, it is a pervasive system created to ensure continuing multilevel racial inequity. It will be a boost for black student loan holders, of course, but I don't see how it would necessarily benefit blacks more than whites. It's like saying a flat tax is fair because everyone pays the same amount, when a flat tax far benefits wealthier people because they have the money to spare. In this case, forgiving student loans might benefit black folk in the short-term, but white students will still benefit more in the long-run because they have a sturdier economic societal base to help them back on their feet.