Feds, State Take Steps to Ease Burden on Some Student Loan Borrowers – Los Angeles Sentinel | Los Angeles Sentinel

by cloudnewsmag

Lillian Lewis holds multiple degrees from California State University, Sacramento (also known as Sack State University).

Before the pandemic began, Lewis said he was burdened with a month’s budget by paying off the high student loan debt he had incurred to cover his tuition and living expenses while he was still in school. These arrears (“thousands”) of growing interest made it difficult for her to achieve her goals.

But last month, Lewis and about 30,000 other American student loan borrowers across the United States received unexpected good news. The Biden administration has announced a $ 2 billion bailout program that extends the Public Service Loan Licensing (PSLF) program.

“It will take a big burden from my finances and improve my credibility, it wasn’t bad anyway,” said Lewis, who works for social work and now lives in Las Vegas. “It took me forever to pay off. Now I don’t have to worry anymore.”

PSLF promises a career as a civil servant and clears student loan debt to borrowers who work full-time in public or non-profit organizations.

The bailout program began approximately three months before the federal government lifted the freeze on student loan payments on January 31, 2022. In March 2020, the COVID-19 outbreak struck the country, and the federal government suspended monthly payments for Americans borrowing student loans. , Stopped all collection activities and applied a temporary zero interest rate to all debt.

There are thousands of African Americans like Lewis in California. They have huge balances resulting from loans they take to pay tuition fees that are not covered by scholarships, living expenses, textbooks and other expenses.

In November, highlighting the story of a borrower, US Secretary of Education Miguel Cardona tweeted “just getting started” to provide millions of Americans with student debt relief.

According to reports from the California Student Loan and Debt Service Review Workgroup (CSLDSRW) and the National Center for Education Statistics (NCES), which were established under the State Budget Act of 2020, 84.9 blacks with a bachelor’s degree from 2015 to 2016. % Is in debt. Average $ 34,000 at graduation.

A CSLDSRW study found that color Californians were more likely to default on student loans. In the neighborhood of the San Francisco Bay Area, which has the highest percentage of black and Latino residents, 19.9% ​​of borrowers were overdue and 15% were the default.

Congressman Ayanna Pressley talks about student debt cancellation December 5, 2021 (Photo courtesy of California Black Media)

In Los Angeles, borrowers living in zip codes with a large ethnic minority population have doubled the default rate than borrowers with predominantly white zip codes.

US Senator Ayanna Pressley (D-Massachusetts) told the media earlier this year at an event hosted by the American Federation of Teachers that she also defaulted on student loans.

According to the American Association of University Women, black women have 20% more student debt than white women. This is an advocacy group that fights for fair wages and financial opportunities for women.

“Like 85% of black students, I had to borrow. And like many of those students, I also defaulted on those loans. Black and brown students are white. We know that we are five times more likely to default on these loans than students, “Presley said.

Of all borrowers, CSLDSRW reported that black women had an average student debt of $ 37,558 from undergraduate studies than any other group.

Black college graduates average $ 52,000 in student loans, according to EducationData.org, a website that addresses rising costs in higher education. That’s nearly $ 25,000 more than a white graduate.

In October, Governor Gavin Newsom signed Parliamentary Bill (AB) 424, a private student loan recovery reform law that imposes new document requirements on private student loan lenders before initiating collection activities. .. AB424 will be legal on July 1, 2022.

When Governor Newsom signed the bill, he said, “We are making efforts by making students more accessible to quality educational opportunities, changing the course of the next generation, and strengthening California’s innovation economy.” It states.

“California has been thriving at our world-class universities for decades, but not everyone has the same access. Today, it’s changing,” he continued.Everyone is worth the challenge of “California Dreams”

The US Department of Education expects thousands more to benefit in the coming months from a federal-sponsored debt relief program.

Over 45 million Americans have a total of $ 1.7 trillion in student loan debt. Progressive lawmakers are urging Biden to wipe out all federal debt up to $ 50,000 and are working to stop repayment of loans.

“89% of student borrowers say they are not ready to resume student loan payments. 27% spend at least one-third of their income on resumption,” Senator Elizabeth Warren said. (D-MA) tweeted. “Student debt is dragging our community and the economy@POTUS should do it #CancelStudentDebt.. “

Feds, State Take Steps to Ease Burden on Some Student Loan Borrowers – Los Angeles Sentinel | Los Angeles Sentinel Source link Feds, State Take Steps to Ease Burden on Some Student Loan Borrowers – Los Angeles Sentinel | Los Angeles Sentinel

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