Wednesday, October 11, 2017
Nearly half of black Americans who borrowed from the federal government to attend college defaulted on their student loans — more than double the rate among white student debtors, according to new data from the U.S. Department of Education
Some 48.6% of black student debtors defaulted on a federal loan, compared with 10.8% of Asians, 20.4% of whites, and 34.7% of Hispanics. Across all races, about 27% of all borrowers defaulted. Nearly two-thirds of black students who took out loans to attend for-profit colleges, or 65.7%, ended up in default, data show. But the racial disparity was particularly dramatic for those who attended nonprofit four-year colleges: They were four times as likely as their white peers to default on their loans. The typical white household led by someone without a bachelor's degree is wealthier than the typical black household led by someone with at least a bachelor's degree, according to figures from the Federal Reserve’s triennial Survey of Consumer Finances.