ATLANTA — With federal student loan repayments set to resume in October after a three-year pause, local advocates are expressing concerns about the lasting impact this move will have on Black and Hispanic communities. Georgia Tech senior, Camille Troutman, shares the anxiety felt by many of her peers.
Troutman, who is not currently burdened by undergraduate loans due to her athletic scholarship, worries about the debt she may incur while pursuing her postgraduate studies.
"I do plan to attend law school within the next year or two, and I'm positive I will have to take out loans then," she said.
As a charter member of her school's NAACP chapter, Troutman is also concerned about how loan payments might affect other Black college graduates with outstanding loans. She fears that the debt could dictate their career choices and hinder their pursuit of their passions.
According to the Student Borrower Protection Center, Georgia ranks second overall for student loan debt. The data reveals significant disparities among different racial groups. On average, Black borrowers carry approximately $22,550 in undergraduate loans, while Hispanic borrowers have around $21,240, compared to their white counterparts with an average balance of approximately $17,850.
Andres Parra with GALEO, an organization advocating for the rights of Latin and Hispanic communities, points out that they face unique challenges in dealing with student debt. Many members of these communities are first-generation college applicants and lack the resources and connections to navigate the application process and minimize loan dependency. Parra stresses that this burden makes it even more difficult for them to achieve financial milestones like buying a home, owning a car, and accessing desirable job opportunities.
Both Troutman and Parra agree that increasing awareness about student loans and financial aid options is crucial to helping future students avoid excessive debt. By providing more support and education, they believe students can make informed decisions and strive for their goals with less financial strain.
As the resumption date approaches, local advocates continue to call for targeted assistance and increased efforts to address the disproportionate impact of student loans on Black and Hispanic communities.