\n<\/p>\n
The fate of up to\u00a0$20,000 in student loan cancellation<\/a>\u00a0for over 40 million borrowers is now in the hands of the Supreme Court. One group, however, has the most to lose if the court decides against the Biden administration.<\/p>\n That group is Black women.<\/p>\n \u201cWe are told that if you get your education, you can make more money,\u201d says Tisa Silver Canady, author of \u201cBorrowing While Black.\u201d \u201cAnd then you find yourself in this situation where the education that was supposed to open doors has put you in the biggest trap of your life.\u201d<\/p>\n Black women bear a disproportionate amount of the $1.6 trillion federal student debt total with higher debt averages than any other demographic. For example, Black women have 43% more undergraduate debt and nearly 99% more graduate school debt than their white woman counterparts 12 months after graduation, according to an April 2022 study by the nonprofit organization The Education Trust.\u00a0<\/p>\n The problem is complicated. \u201cHigher education has become this system for perpetuating financial inequality, when it is believed in our society to be this great equalizer,\u201d says Fenaba Addo, author of \u201cA Dream Defaulted: The Student Loan Crisis Among Black Borrowers.\u201d<\/p>\n Black women are less likely to see higher wages as a result of their education: College-educated Black women earn 10% less than college-educated white women and 34% less than college-educated white men on average, according to The Education Trust study.\u00a0<\/p>\n \u201cI think that when we talk about student loan debt as a whole, we don\u2019t pay attention to the spaces where, particularly for Black women, higher learning does not equate to higher earning,\u201d\u00a0 says Brittani Williams, senior policy analyst in higher education at The Education Trust.<\/p>\n Though Biden\u2019s cancellation would serve as a hand up for many Black women, you can gain control of your student loans regardless of the Supreme Court\u2019s decision. \u201cThis is not something that you should approach passively,\u201d Canady says. \u201cBe active. Be strategic.\u201d<\/p>\n Read<\/strong>: The little-known student loan middlemen who are threatening debt forgiveness<\/a><\/p>\n Borrowers can expect\u00a0new features with income-driven repayment, <\/a>or IDR, soon. With the changes, your monthly payments could shrink by 50% or more, and you could see your remaining balance forgiven sooner.\u00a0<\/p>\n The Department of Education also plans to conclude a one-time IDR waiver this summer. The waiver will count more months toward the time needed for forgiveness. If your loans are more than 10 years old and your original balance was $12,000 or less, you could qualify for immediate forgiveness under the new rules. If your original balance was higher but your loans are closer to 20 years old, you could still see expedited forgiveness with the waiver.\u00a0<\/p>\n Learn more: <\/strong>Biden administration unveils sweeping changes to student loan repayment<\/a><\/p>\n Those who work in public service or for nonprofit organizations could qualify for full loan forgiveness under the\u00a0Public Service Loan Forgiveness, or PSLF<\/a>, program. Under PSLF, borrowers who make 120 qualifying payments can get their remaining balance erased.\u00a0<\/p>\n All months \u2014 even without payment \u2014 during the interest-free forbearance period count. And after the Department of Education\u2019s upcoming waiver, you could be on your way to total forgiveness sooner than expected.\u00a0\u00a0<\/p>\n Your state could have its own forgiveness program. These programs are generally tied to a degree plan or employment type, and forgiveness amounts vary. Contact your state\u2019s education department to explore options.\u00a0<\/p>\n Read<\/strong>: Where do things stand with student loans? Here are answers to 5 common questions.<\/a><\/p>\n Some jobs will help you repay your student loans. Generally, these employers pay a set amount on your outstanding balance each year or month. The payments can be tied to a service obligation, so make sure you understand the implications of accepting any money. Contact your human resources department for more information on your company\u2019s student loan repayment benefits.\u00a0<\/p>\n Some private or nonprofit organizations offer grants designed to help borrowers pay off their student loans. These programs have varying eligibility criteria and award amounts. Check\u00a0Bold.org<\/a>\u00a0for a list of opportunities.\u00a0<\/p>\n If you\u2019ve exhausted all of your options and are still drowning in student loan debt, bankruptcy may be a good option.\u00a0<\/p>\n \u201cBankruptcy isn\u2019t actually a financial death sentence,\u201d says student loans bankruptcy attorney Stanley Tate. \u201cIt\u2019s really a shortcut to debt relief.\u201d<\/p>\n With bankruptcy rules around student loans easing, you may have a new tool in overcoming student debt. But bankruptcy isn\u2019t right for all borrowers right now.<\/p>\n \u201cIf you have Education Department-owned loans, just hold up and see what happens\u201d with the proposed relief plans, says Tate. He adds that most borrowers with federal student loans may get relief from other government programs.\u00a0<\/p>\nIncome-driven repayment<\/strong><\/h6>\n
Other forgiveness plans<\/strong><\/h6>\n
Public Service Loan Forgiveness<\/strong><\/h4>\n
State-based forgiveness<\/strong><\/h4>\n
Employer assistance programs<\/strong><\/h6>\n
Repayment grants<\/strong><\/h6>\n
Bankruptcy\u00a0<\/strong><\/h6>\n