abolish all student loan debt
The amount of student loan debt in repayment decreased 82% while student debt in forbearance increased 375% between the 2nd and 3rd financial quarters of 2020. (EduData)
Big picture
Americans owe over $1.71 trillion in student loan debt, spread out among about 44.7 million borrowers. That’s about $739 billion more than the total U.S. credit card debt. (FedReserve)
The average cost of tuition, fees, and room and board at a public four-year university totaled $38,330 for out-of-state students for the 2019-2020 academic year. (collegeboard)
The class of 2018 left school with an average of $29,200 in student loans. (CAP)
Systemic racism
According to the National Center for Education Statistics, 71% of Black students borrow federal loans to pay for attendance at four-year colleges, compared to 56% of white students.12 Hispanic and Black students are more likely to graduate with higher levels of debt than white students, and they're also more likely to default on their loans. (nces, brookings)
As of the fourth quarter of 2019, 11.1% of student loan borrowers were 90 days or more delinquent or in default on their loans. This suggests that a substantial number of borrowers are struggling to keep up with their loan payments. (nyfed.org)
Gender pay & loan debt gap
The gender pay gap often prevents women from making the same progress in paying off their loans as men.
As of 2019, women working full-time earn approximately 82% of what men are paid. Overall, women working full time in the U.S. make 82% of what men do. And collectively, working women lose out on more than $500 billion a year. (aauw)
Biden administration
On Jan. 8, Biden officials reiterated the president's support for Congress to "immediately" cancel $10,000 of federal student loan debt per person as part of COVID-19 relief.
That could wipe out debt entirely for nearly 15 million borrowers who owe $10,000 or less.
However, the majority of student loan borrowers (roughly 67%) have more than $10,000 in debt. (NewAmerica)
Movements leading the way
The Debt Collective is a debtors' union fighting to cancel debts and defend millions of households. Join us to build a world where college is publicly funded, healthcare is universal and housing is guaranteed for all. (DebtCollective)
The People’s Bailout includes short and long-term recovery. The bailout principles address outstanding urgent needs, including health protections and economic relief for all, while also making a down payment on our future. This means higher wages and meaningful work that contributes to the health of individuals, communities, and our planet. It means everyone can access the care that they need without fearing they’ll go bankrupt to do it. (PeoplesBailout)
Resources & further reading
Biden 100 Jubilee Strike (DebtCollective)
The Emerging Millennial Wealth Gap (NewAmerica)
Five Principles of the People’s Bailout (PeoplesBailout)
Sign the Debt Strike Petition (ActionNetwork)
Project On Student Debt (TICAS)
Black and White Disparity Student Loan Debt (Brookings)
Fast Facts: The Gender Pay Gap (AAUW)
Education of Racial and Ethnic Groups 2018 (NCES)
Household Debt Tops 14 Trillion (NyFed)
Addressing the Student Loan Crisis (AmericanProgress)
College Pricing Report 2019 (College Board)