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Feds, State Take Steps to Ease Burden on Some Student Loan Borrowers

According to a report by California Student Loan and Debt Service Review Workgroup (CSLDSRW) — established under the state’s Budget Act of 2020 — and the National Center for Education Statistic (NCES), 84.9% of Blacks who earned bachelor’s degrees from 2015 to 2016 owed an average of $34,000 upon graduation.

Published

3 years ago

December 26, 2021

Oakland Post

Massachusetts Congresswoman Ayanna Pressley speaking about cancellation of student debt Dec 5, 2021. Photo courtesy of California Black Media.

By Antonio Ray Harvey | California Black Media

Lillian Lewis earned multiple degrees from California State University Sacramento.

Before the pandemic began, Lewis said, paying down the high student loan debt she accrued to cover her tuition and living expenses while in school put a strain on her monthly budget. Those arrears (“in the thousands”) with growing interest made it difficult for her to make ends meet.

But last month, Lewis and about 30,000 other American student loan borrowers across the United States received some unanticipated good news. The Biden administration announced a $2 billion relief program that expanded the Public Service Loan Forgiveness (PSLF) program.

“It took a huge load off my finances and will improve my credit, which was not bad anyway,” said Lewis, who does social work and now lives in Las Vegas. “It was taking forever to pay off. Now, I don’t have to worry anymore.”

PSLF wipes out student loan debt for borrowers who commit to public service careers or work full time for public or nonprofit organizations.

The relief program launched about three months before the federal government lifts a freeze on student loan payments on Jan. 31, 2022. In March 2020, as the COVID-19 pandemic gripped the country, the feds paused monthly payments for Americans who owe student loans, stopped all collection activity, and applied a temporary zero-interest rate to all debt.

In California, there are thousands of African Americans like Lewis: saddled with huge balances stemming from loans they took out to pay for tuition not covered by scholarships, living arrangements, textbooks, and other expenses.

In November, highlighting one borrower’s story, United States Education Secretary Miguel Cardona tweeted, “we are just getting started” to provide student debt relief for millions of Americans.

CSLDSRW’s study also found that Californians of color default more on their student loans. Neighborhoods in the San Francisco Bay Area with the largest percentages of Black and Latino residents had 19.9% of borrowers in delinquency and 15% in default.

In Los Angeles, borrowers living in ZIP codes with high minority populations had double the amount of default rates than borrowers in ZIP codes that are predominantly white.

U.S. Congresswoman Ayanna Pressley (D-Massachusetts) told the media at an event hosted by the American Federation of Teachers earlier this year that she, too, had defaulted on her student loans.

Black women carry 20% more in student debt than white women, according to the American Association of University Women, an advocacy group that fights for fair pay and economic opportunities for women.

“Like 85% of Black students, I had to borrow; and like so many of those students, I had also defaulted on those loans. We know that Black and Brown students are five times more likely to default for those loans than our white counterparts,” said Pressley.

CSLDSRW’s reported that among all borrowers, Black women accrued more student debt, an average of $37,558, from their undergraduate studies than any other group.

According to EducationData.org, a website that addresses the rising cost of higher education, Black college graduates owe an average of $52,000 in student-loan debt – nearly $25,000 more than their white counterparts.

In October, Gov. Gavin Newsom signed Assembly Bill (AB) 424, the Private Student Loan Collection Reform Act, which places new documentation requirements on private student loan lenders before activating any collection activity. AB 424 becomes law on July 1, 2022.

“We’re turning commitments into reality by ensuring that our students have more access to high-quality educational opportunities, creating a change of course for generations to come and bolstering California’s innovation economy,” Newsom said when he signed the legislation.

“Californians have thrived at our world class universities for decades, but not everyone has had similar access – today that’s changing,” he continued. Everyone deserves a shot at the ‘California Dream.”

The U.S. Department of Education expects thousands more to benefit in the coming months from more federally funded debt relief programs.

Over 45 million Americans have a total of $1.7 trillion worth of student loan debt. Progressive lawmakers have pushed Biden to wipe out all federally held debts up to $50,000 and they are making efforts to stop repayments of loans.

“89% of student borrowers say they aren’t financially ready to resume student loan payments & 27% will be spending at least a third of their income on payments when they resume,” tweeted Sen. Elizabeth Warren (D-MA). “Student debt is dragging down our communities and economy@POTUS should #CancelStudentDebt.”

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Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

Published

1 day ago

December 20, 2024

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

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‘Donald Trump Is Not a God:’ Rep. Bennie Thompson Blasts Trump’s Call to Jail Him

“Donald Trump is not a god,” U.S. Rep. Bennie Thompson, D-Miss., told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

Published

4 days ago

December 18, 2024

Oakland Post

Congressman Bennie Thompson, D-Miss. Courtesy photo.

By Post Staff

U.S. Rep. Bennie Thompson, D-Miss., said he not intimidated by President-elect Donald Trump, who, during an interview on “Meet the Press,” called for the congressman to be jailed for his role as chairman of the special congressional committee investigating Trump’s role in the Jan. 6, 2021, mob attack on the U.S. Capitol.

“Donald Trump is not a god,” Thompson told The Grio during a recent interview, reacting to Trump’s unsupported claims that the congressman, along with other committee members like vice chair and former Republican Rep. Liz Cheney, destroyed evidence throughout the investigation.

“He can’t prove it, nor has there been any other proof offered, which tells me that he really doesn’t know what he’s talking about,” said the 76-year-old lawmaker, who maintained that he and the bipartisan Jan. 6 Select Committee – which referred Trump for criminal prosecution – were exercising their constitutional and legislative duties.

“When someone disagrees with you, that doesn’t make it illegal; that doesn’t even make it wrong,” Thompson said, “The greatness of this country is that everyone can have their own opinion about any subject, and so for an incoming president who disagrees with the work of Congress to say ‘because I disagree, I want them jailed,’ is absolutely unbelievable.”

When asked by The Grio if he is concerned about his physical safety amid continued public ridicule from Trump, whose supporters have already proven to be violent, Thompson said, “I think every member of Congress here has to have some degree of concern, because you just never know.”

This story is based on a report from The Grio.

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City of Oakland Celebrates Reopening of Main Library

“Libraries are such critical facilities for all Oaklanders, whether it’s children coming to story-time, adults reading the newspapers or borrowing the latest novels, and people engaging with a range of services and programs that the library hosts,” said Council President and District 2 Councilmember Nikki Fortunato Bas. “Such library services and programs are only possible when the facility’s electricity, heating, roof, and lighting are fixed and running efficiently. I’m proud to join this re-opening of our Main Public Library.”

Published

4 days ago

December 18, 2024

Oakland Post

Left to Right- Jamie Turbak, Director of Library Services, LaTonda Simmons, Assistant City Administrator, Nikki Bas, President Oakland City Council, Shen Thao, Mayor of Oakland, Carroll Fife, Oakland City Councilmember District 3, Harold Duffey, Assistant City Administrator, Sean Maher, Projects Coordinator. Photo by Kevin Hicks.

The branch had been closed since May for critical infrastructure upgrades

Special to the Post

The City of Oakland leadership and community partners gathered to celebrate the reopening of the Main Library after completion of critical infrastructure upgrades to enhance the library’s facilities and provide a better experience for patrons.

Renovations include new roof installation, skylight repair, critical electrical system upgrades, new boiler control system installation, auditorium heating and cooling system installation, and improvements to lighting, flooring and ceilings throughout the building.

“This is truly something to celebrate, the reopening of our wonderful Main Library! I congratulate the staff and our partners for this important project to make the Main Library a more comfortable place for everyone for years to come, said Oakland Mayor Sheng Thao. “Thank you to Oakland voters and the California State Library for making these crucial improvements possible.”

“Public libraries are a wonderful resource for our residents, offering a safe space for learning and being,” said District 3 Councilmember Carroll Fife. “It is critical to improve and modernize our libraries so more members of our community can utilize and enjoy them. I’m excited that the necessary renovations to the Main Library have been completed successfully and thank everyone involved, particularly the City team, who helped secured the necessary grant funds for this work.”

“I am proud of the City staff and project partners who kept this important project on schedule and under budget,” said Assistant City Administrator G. Harold Duffey. “The library is an incredibly important resource for our community members, and this project is an investment into the library’s future.”

“December 2nd was a momentous occasion for Oakland Public Library as we proudly reopened the doors of the Main Library following extensive infrastructure repairs,” said Director of Library Services Jamie Turbak. “Closing the Main Library for six months was no easy decision, as it serves as the central hub for our library system and is truly the heart of Oakland. Yet, this renovation was essential, representing more than just physical upgrades—it reflects our ongoing commitment to creating a safe, welcoming space for everyone.”

The City Administrator Jestin Johnson also attended the press conference and signalled his support for the completion of the record-setting completion of the renovations. Gay Plair Cobb, a newly appointed Library Commissioner said the Library represents the soul and brains of our community.

The Oakland Public Library secured funding for these crititcal repairs through a variety of sources. The California State Library’s Building Forward Library Facilities Improvement Program awarded the Main Branch $4.2 million. To comply with the grant terms, the City of Oakland provided matching funds through Measures KK, as approved by the Oakland City Council in October 2023.

The Main Library will host an Open House to celebrate the reopening on February 22, 2025, 10 a.m. – 5:00 p.m.

About the Oakland Public Library

The Oakland Public Library is a part of the City of Oakland in California and has been in existence since 1878. Locations include 16 neighborhood branches, a Main Library, a Second Start Adult Literacy Program, the Oakland Tool Lending Library, and the African American Museum and Library at Oakland (AAMLO). The Oakland Public Library empowers all people to explore, connect, and grow. Oaklandlibrary.org