A persistent racial wealth gap, waning investment in higher education and limited institutional resources are driving up the rate of borrowing at historically black colleges and universities, with 4 out of 5 undergraduates relying on student loans to finance their education, according to a new study from the United Negro College Fund.[...]
Regardless of the type of college they attend, African American students as a whole are more likely to be saddled with education debt than whites. A joint study by liberal think tank Demos and the Institute for Assets & Social Policy at Brandeis University found that 54 percent of young African Americans between the ages of 25 and 40 have student loans, compared with 39 percent of their white counterparts.
That debt is exacerbating existing racial wealth disparities by making it more difficult for black families to save money and accumulate assets to cushion against economic turmoil. According to the joint study, the median household wealth is $3,600 for young African Americans, compared with just under $36,000 for young white households.[...]