Disproportionately Impacted: Closing the Racial Wealth Gap through Student Loan Cancellation, Payment Reforms, and Investment in College Affordability

In this paper, the Center for Law and Social Policy (CLASP) and the National Consumer Law Center (NCLC) explore the disproportionate impact of student debt on Black borrowers. We also make recommendations to address the dual student loan and college affordability crises through federal policies and executive action. These steps include administrative action to extend the student loan payment pause; ensure a smooth transition of loan accounts to new servicers; provide increased protections for borrowers, particularly those who are victims of predatory lending and for-profit colleges; improve existing repayment options, including Income-Driven Repayment (IDR); and invest in college affordability through federal grants like the Pell Grant, a federal free community college program, and support for student basic needs