Student Loan Debt Statistics By Race
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Higher borrowing amounts could be one factor affecting default and delinquency rates. shows that 12 percent of white students default on their student loans within 12 years, while nearly 38 percent of Black students’ loans will be in default status in the same period. The adds that 20 years after starting a college education, the typical white borrower pays off almost 95 percent of their balance — but the typical Black borrower still owes 95 percent of their principal balance.
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Klaus Vedfelt/Getty Images November 07, 2022 Heidi Rivera is a student loans writer for Bankrate. She began her journey in the personal finance space in 2018 and is passionate about collecting data and creating content around higher education and student loans. Bankrate logoThe Bankrate promise
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Many American college graduates struggle with , and with rising tuition costs, more and more people struggle to afford a college education. However, not all borrowers feel the pinch the same way. Due to systemic factors like the , borrowers of color are most likely to face financial consequences stemming from their student debt. In fact, a recent revealed that 64 percent of Black respondents and roughly 70 percent of Hispanic respondents have delayed important financial milestones due to their student loan debt, compared to less than half of white respondents. Here’s a breakdown of America’s average student loan balances by race and the disparities between demographics.Key debt statistics by race
Debt Black or African American Black students student loan debt for a bachelor’s degree, followed by white students. Black borrowers carry a median student loan balance of . take out student loans to pay for college, compared to 66 percent of white students. Four years after graduating, Black students hold as their white peers, largely due to differences in interest accrual and graduate school borrowing. After graduating from college, 17 percent of Black students are , compared to 9 percent of white students. Out of women , the average Black woman carries the most student debt, one year after graduation. are Pell Grant recipients, meaning they come from low-income households. Debt Hispanic or Latino Hispanic students are more averse to borrowing than other groups. In 2019, only , compared to 20 percent of white and 30.2 percent of Black individuals. The — 41 percent less than Black borrowers and 23 percent less than white borrowers. It is estimated that of Hispanic or Latino borrowers are behind on their student loan payments. Twelve years after starting college, the median . By contrast, white borrowers only owe 65 percent of their initial student loan balance during that same timeframe. Sixty-five percent of Latino undergraduate borrowers are Pell Grant recipients, according to the . That means a majority of them come from low-income households. According to the , the median net worth of Hispanic households is $36,100 — almost 81 percent less than that of white households. Debt American Indian or Alaska Native The average amount borrowed by American Indian and Alaska Native students is . Indigenous students rely on more heavily to pay for college than any other form of financial aid. American Indian and Alaska Native borrowers four years after graduation, while white borrowers owed 73 percent. students who identify as American Indian or Alaska Native default on their student loans. Student loan default rates are due to widespread poverty in Indigenous communities. Of the country’s poorest counties, 40 percent are located on reservations. Native Americans have the compared to all other racial and ethnic groups. Debt Asian According to an analysis by the , 72 percent of Asian students are Pell Grant recipients, meaning that most of them come from low-income families. When it comes to college financial aid, . The average amount borrowed by Asian students is . Asian borrowers repay their student loan debt faster than borrowers from any other race or ethnicity. Four years after earning their bachelor’s degrees, . Out of all female undergraduate borrowers, Asian women carry the lowest student loan balance, borrowing and owing one year after graduation. Debt White Four years after obtaining their bachelor’s degree, . Out of all undergraduate students from all races and ethnicities, white students have the lowest percentage of Pell Grant recipients at just . . By contrast, 30.2 of Black households and 14.3 percent of Hispanic households reported having student loan debt. , compared to 17 percent of Black borrowers and 18 percent of Hispanic borrowers. White undergraduate students carry the second-highest student balance after Black undergraduates. White women borrow , while white men borrow an average of $29,862.What is the breakdown of student loan debt by race
Race/ethnicity Average total education loan debt Median household net worth Source: Black $44,880 $24,100 Hispanic $30,890 $36,100 White $40,170 $188,200 Other $40,400 $74,500Racial disparities in student debt
In a from April 2022, borrowers of color — especially Hispanic borrowers — were most likely to report needing to delay a financial decision, like buying a house or saving for emergencies, due to their student debt. Unfortunately, this is only one impact among many that students of color face from their student loan debt. Here are some other key findings from this survey: Sixty-eight percent of white respondents said they never took out student loans to pay for their education, versus 57 percent of Black respondents and 64 percent of Hispanic respondents. Almost half of white respondents said they haven’t delayed any important financial decisions due to their student loan debt, compared to 36 percent of Black respondents and 31 percent of Hispanic respondents. Twenty-four percent of Black respondents said they currently have student loan debt, compared to 13 percent of white respondents and 18 percent of Hispanic respondents. Only 42 percent of Black borrowers who took on student loan debt said college opened up career and income opportunities. By contrast, 54 percent of Hispanic and white borrowers believed they received greater career and income opportunities after graduating college. Twenty-three percent of Hispanic borrowers reported delaying purchasing or leasing a car due to their student loan debt, compared to 20 percent of Black borrowers and 21 percent of white borrowers. According to research from the , Black students saw the highest cumulative percentage change in median student debt and one of the smallest percentage changes in median income from 2009 to 2019, compared to white, Asian and Latino students. also found that Black college graduates owe about $7,400 more than their white counterparts. However, a few years after graduation, this debt gap more than triples for Black borrowers.Race and student loan payments
The outsized effect of student loan debt on marginalized communities can hurt monthly budgets after graduation. estimates that in 2016, Black bachelor’s degree graduates borrowed $53,200; white graduates borrowed $39,500; Asian graduates, $44,800; and Hispanic graduates, $38,000. Here’s how their average monthly payments break down, four years later: Black borrowers $220 White borrowers $240 Asian borrowers $270 Hispanic borrowers $210 That monthly payment gap can be even wider for borrowers with private student loans, which often charge much higher interest rates.Higher borrowing amounts could be one factor affecting default and delinquency rates. shows that 12 percent of white students default on their student loans within 12 years, while nearly 38 percent of Black students’ loans will be in default status in the same period. The adds that 20 years after starting a college education, the typical white borrower pays off almost 95 percent of their balance — but the typical Black borrower still owes 95 percent of their principal balance.