#NNPA BlackPress

Student Loan Debt Drops $10 Billion Due to Biden Administration Forgiveness

NNPA NEWSWIRE — The Center for American Progress estimates the interest waiver provisions would deliver relief to roughly 6 million Black borrowers, or 23 percent of the estimated number of borrowers receiving relief, as well as 4 million Hispanic or Latino borrowers (16 percent) and 13.5 million white borrowers (53 percent).

Published

6 months ago

September 9, 2024

Charlene Crowell NNPA Newswire Columnist

New Education Department Rules hold hope for 30 million more borrowers

By Charlene Crowell, The Center for Responsible Lending

As consumers struggle to cope with mounting debt, a new economic report from the Federal Reserve Bank of New York includes an unprecedented glimmer of hope. Although debt for mortgages, credit cards, auto loans and more increased by billions of dollars in the second quarter of 2024, student loan debt decreased by $10 billion.

According to the New York Fed, borrowers ages 40-49 and ages 18-29 benefitted the most from the reduction in student loan debt.

In a separate and recent independent finding, 57 percent of Black Americans hold more than $25,000 in student loan debt compared to 47 percent of Americans overall, according to The Motley Fool’s analysis of student debt by geography, age and race. Black women have an average of $41,466 in undergraduate student loan debt one year after graduation, more than any other group and $10,000 more than men.

This same analysis found that Washington, DC residents carried the highest average federal student loan debt balance, with $54,146 outstanding per borrower. Americans holding high levels of student debt lived in many of the nation’s most populous states – including California, Texas, and Florida.

The Fed’s recent finding may be connected to actions taken by the Biden administration to rein in unsustainable debt held by people who sought higher education as a way to secure a better quality of life. This decline is even more noteworthy in light of a series of legal roadblocks to loan forgiveness. In response to these legal challenges, the Education Department on August 1 began emailing all borrowers of an approaching August 30 deadline to contact their loan servicer to decline future financial relief. Borrowers preferring to be considered for future relief proposed by pending departmental regulations should not respond.

If approved as drafted, the new rules would benefit over 30 million borrowers, including those who have already been approved for debt cancellation over the past three years.

“These latest steps will mark the next milestone in our efforts to help millions of borrowers who’ve been buried under a mountain of student loan interest, or who took on debt to pay for college programs that left them worse off financially, those who have been paying their loans for twenty or more years, and many others,” said U.S. Secretary of Education Miguel Cardona.

The draft rules would benefit borrowers with either partial or full forgiveness in the following categories:

Borrowers who owe more now than they did at the start of repayment. This category is expected to largely benefit nearly 23 million borrowers, the majority of whom are Pell Grant recipients.
Borrowers who have been in repayment for decades. Borrowers of both undergraduate and graduate loans who began repayment on or before July 1, 2000 would qualify for relief in this category.
Borrowers who are otherwise eligible for loan forgiveness but have not yet applied. If a borrower hasn’t successfully enrolled in an income-driven repayment (IDR) plan but would be eligible for immediate forgiveness, they would be eligible for relief. Borrowers who would be eligible for closed school discharge or other types of forgiveness opportunities but haven’t successfully applied would also be eligible for this relief.
Borrowers who enrolled in low-financial value programs. If a borrower attended an institution that failed to provide sufficient financial value, or that failed one of the Department’s accountability standards for institutions, those borrowers would also be eligible for debt relief.

Most importantly, if the rules become approved as drafted, no related application or actions would be required from eligible borrowers — so long as they did not opt out of the relief by the August 30 deadline.

“The regulations would deliver on unfulfilled promises made by the federal government to student loan borrowers over decades and offer remedies for a dysfunctional system that has often created a financial burden, rather than economic mobility, for student borrowers pursuing a better future,” stated the Center for American Progress in an August 7 web article. “Meanwhile, the Biden-Harris administration also introduced income limits and caps on relief to ensure the borrowers who can afford to pay the full amount of their debts do so.”

“The Center for American Progress estimates the interest waiver provisions would deliver relief to roughly 6 million Black borrowers, or 23 percent of the estimated number of borrowers receiving relief, as well as 4 million Hispanic or Latino borrowers (16 percent) and 13.5 million white borrowers (53 percent).”

These pending regulations would further expand the $168.5 billion in financial relief that the Biden Administration has already provided to borrowers:

$69.2 billion for 946,000 borrowers through fixes to Public Service Loan Forgiveness (PSLF).
$51 billion for more than 1 million borrowers through administrative adjustments to IDR payment counts. These adjustments have brought borrowers closer to forgiveness and addressed longstanding concerns with the misuse of forbearance by loan servicers.
$28.7 billion for more than 1.6 million borrowers who were cheated by their schools, saw their institutions precipitously close, or are covered by related court settlements.
$14.1 billion for more than 548,000 borrowers with a total and permanent disability.
$5.5 billion for 414,000 borrowers through the SAVE Plan.

More information for borrowers about this debt relief is available at StudentAid.gov/debt-relief.

Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.

Charlene Crowell NNPA Newswire Columnist

Posts by Charlene Crowell NNPA Newswire Columnist

Up Next

Reading and Moving: Great Ways to Help Children Grow

Don't Miss

Congressional Black Caucus Releases Groundbreaking Corporate Accountability Report on DEI

Charlene Crowell NNPA Newswire Columnist

Click to comment

#NNPA BlackPress

Target Takes a Hit: $12.4 Billion Wiped Out as Boycotts Grow

Target Corporation’s stock plummeted by approximately $27.27 per share by the end of February, erasing about $12.4 billion in market value. The drop came on February 28, the designated economic blackout day, and coincided with mounting backlash over the retailer’s decision to abandon its diversity, equity, and inclusion (DEI) commitments. The National Newspaper Publishers Association […]

Published

5 days ago

March 2, 2025

Stacy Brown

The National Newspaper Publishers Association (NNPA) has taken action through its Public Education and Selective Buying Campaign. NNPA President and CEO Dr. Benjamin F. Chavis Jr. said, “Black consumers helped build Target into a retail giant, and now they are making their voices heard. If corporations believe they can roll back diversity commitments without consequence, they are mistaken.”

Reverend Jamal Bryant, pastor of New Birth Missionary Baptist Church in Georgia, has led calls for a “40-Day Target Fast,” urging Black consumers to withhold their spending at the retailer. “Black people spend $12 million a day at Target,” Bryant said. “If we withhold our dollars, we can make a statement that cannot be ignored.”

The NAACP also issued a Black Consumer Advisory in response to Target’s DEI rollback, warning Black consumers about corporate retreat from diversity initiatives. The advisory urges them to support businesses that remain committed to investing in Black communities.

Target is also facing legal battles. Shareholders have filed lawsuits challenging the company’s DEI policies, arguing that the commitments hurt financial performance. Meanwhile, conservative groups have sued over Target’s diversity efforts, claiming they discriminated against white employees and other groups.

“Consumers have the power to demand change, and Target is learning that lesson the hard way,” Chavis said.

Stacy Brown

Posts by Stacy Brown

#NNPA BlackPress

BREAKING Groundbreaking Singer Angie Stone Dies in Car Accident at 63

By Stacy M. Brown BlackPressUSA Senior National Correspondent @StacyBrownMedia The music and entertainment world reacted in shock and sorrow after the tragic death of Angie Stone, the pioneering singer-songwriter and hip-hop trailblazer who was killed in a car accident early Saturday morning in Montgomery, Alabama. She was 63. Stone’s publicist, Deborah R. Champagne, confirmed the […]

Published

6 days ago

March 1, 2025

Stacy Brown

By Stacy M. Brown

BlackPressUSA Senior National Correspondent

@StacyBrownMedia

The music and entertainment world reacted in shock and sorrow after the tragic death of Angie Stone, the pioneering singer-songwriter and hip-hop trailblazer who was killed in a car accident early Saturday morning in Montgomery, Alabama. She was 63.

Stone’s publicist, Deborah R. Champagne, confirmed the devastating news, stating that her family is heartbroken. “A number of her loved ones had just spoken to her last night,” Champagne told TMZ.

Born Angela Brown, Stone first rose to prominence as a member of The Sequence, hip-hop’s first all-female rap group. Their 1979 hit Funk You Up became one of the earliest rap records to break into the mainstream, later sampled in Bruno Mars’ Uptown Funk and Dr. Dre’s Keep Their Heads Ringin’. After her years with The Sequence, Stone launched a solo career in the late 1990s, earning Grammy nominations and releasing celebrated R&B hits like Brotha, No More Rain, and Wish I Didn’t Miss You.

Stone’s career spanned decades, seamlessly blending hip-hop, soul, and R&B. Her debut solo album, Black Diamond, achieved gold status. She earned multiple Grammy nominations, including Best Female R&B Vocal Performance for U-Haul and Best R&B Performance by a Duo or Group with Joe for More Than a Woman and with Betty Wright for Baby.

Several of Stone’s peers offered tributes following the devastating news.

Chuck D, the legendary Public Enemy frontman and Rock & Roll Hall of Fame inductee, called Stone a foundational figure. “Angie Stone [was] a powerful pioneer whenever I thought of her,” he told Black Press USA. “A foundation of modern soul and hip-hop and women empowerment that she’s still uncredited for. A terrible loss.”

Rocky Bucano, executive director of the Hip Hop Museum, described Stone as a groundbreaking force. “As a member of The Sequence, Angie B helped pave the way for generations of women in hip-hop,” Bucano said in an email to Black Press USA. “Her impact on hip-hop culture is immeasurable, and her presence will be deeply missed. Rest in power, Angie Stone. Your voice and influence will never fade.”

DJ Ralph McDaniels also told Black Press USA that Stone’s artistry mainly was unmatched. “Peaceful journey to our sister Angie Stone,” he said. “Her voice was unique and direct from hip-hop’s female group Sequence to her solo soul songs.”

Dr. Mario Dickens of Mario Dickens Ministries also offered condolences. “We are saddened to hear of the passing of one of this era’s greatest memorable voices,” he said. “We pray for her loved ones and fans,” said Dickens, who extended his company’s memorial printing services to Stone’s family at no cost.

Stacy Brown

Posts by Stacy Brown

#NNPA BlackPress

NAACP Legend and Freedom Fighter Hazel Dukes Passes

“She was a warrior in the truest sense of the word and activist extraordinaire.” Those words are from Reverend Al Sharpton who is celebrating the life and activism of the iconic Dr. Hazel Nell Dukes, civil rights activist and leader within the ranks of the New York and National Board of the NAACP. Dukes 92 […]

Published

6 days ago

March 1, 2025

Oakland Post

Just two weeks ago, Dukes was wheelchair bound and present to perform her duty as NAACP Election Supervisory Chair certifying the elections of the rights groups’ board members.

Dr. Ben Chavis, elected in 1993, was the 7th Executive Director and CEO of the NAACP and spoke on the life of Dukes saying, “The transformative leadership legacy of freedom fighter Hazel Dukes will now be enshrined with the greatest honor and respect as a leader of the NAACP in America and throughout the world.”

This morning the Chair of the Board of the NAACP Leon W. Russell told Black Press USA that Dr. Dukes led the NAACP New York Conference for 50 years acknowledging, “Her work has helped ensure that the 116-year-old NAACP could remain relevant and continue its work throughout the years. She has been consistent in her work and her support as a member and a leader.”

Sharpton says she has known her for almost 50 years since he was a teen. “There never was an issue that she was not out front. We’ve gone to jail together and the White House together.”

Sharpton expects to offer comments at Duke’s funeral service. He recalls she was “authentic, committed, and concerned,” The rights leader and TV host also says, “We will never have another Hazel Dukes. But thank God we had this one.”

The NAACP Board was notified of the passing of Dr. Dukes through the following correspondence this morning:

Passing of a Loved One. To God Be The Glory!

Colleagues, it is with a heavy heart and a profound sense of sadness that I inform you of that our sister, Momma Dukes, went to be with the ancestors at 6:20 AM today. Her transition was officially recorded and announced at 6:38 AM. Please lift her up in prayer and continue to pray for her son Ronald and all of her extended family.

It is always hard to send a message like this but as Hazel would say, she is in God’s hands now.

Dr. Hazel Nell Dukes, President of the NAACP New York State Conference and Member of the NAACP National Board of Directors was bold and courageous. She was a true warrior for civil rights and social justice. Her voice and her influence at our table will be missed, but we will all continue to be influenced by that same voice as we continue to fight for that same cause. Hazel was one of the giants on whose shoulders we will continue to stand as we continue to do God’s work here on Earth.

I will keep you informed as arrangements are announced and finalized. Please know that Hazel passed peacefully surrounded by many of the people who loved her and clergy who knew and pastored to her.

May our sister Hazel rest in power.

With a heavy heart.

Leon W. Russell

Chairman

NAACP National Board of Directors