Black women bear largest burden in student debt crisis
So often, student loan debt is talked about in wide-ranging terms that mask the true impact on a community, particularly on women of color. Women hold almost two-thirds of the outstanding student loan debt in the United States, according to a key study by American Association of University Women. Black women have the highest student loan debt of any racial or ethnic group, according to the AAUW report. Staci Irvin, 51, went into default at one point. She started college at Wayne State in the late 1980s but then got married at 21 and had two children. She continued to take a class here and there. She took one year off, though, in the mid-1990s — a move that she didn't realize would trigger a requirement that she start making monthly payments on her student loans. She ended up going into default without really realizing it. When she later got a job working for Southfield Public Schools as a substitute teacher, she discovered one of the harsh consequences of going into default — she saw a substantial portion of her wages being garnished to pay off those federal student loans. She wasn't aware of the penalties — late fees, collection costs, damages to one's credit score — for being in default. Private lenders often sue their borrowers who default on their student loan, too. She's back attending classes at Wayne State, working toward a bachelor's degree in communications. She's part of the college's Warrior Way Back program, which was introduced in 2018 as a way to re-engage students who left the university with debt and without a degree. The model includes a way toward some debt forgiveness for those with small balances. Irvin expects to have about $1,000 she owes the college forgiven.