How Income-Driven Repayment Plans Fail Black Borrowers

Approximately 43 million Americans collectively owe $1.6 trillion in federal student loan debt, but this debt is not borne equally by all. Black borrowers are amongst those most negatively impacted by student loans due to the ongoing effects of systemic racism, the inequitable distribution of wealth, a stratified labor marker, and rising college costs.Federal income-driven repayment (IDR) plans are designed to make monthly student loan payments manageable and more affordable for borrowers. Unfortunately, they are often ineffective at reducing a borrower's debt burden over time.Drawing on qualitative data from our National Black Student Debt Study, this brief dives into how existing IDR plans are failing Black borrowers. A higher education should be the key to a better future, but for many Black borrowers who participated in the study, student loans are a lifetime debt sentence