Personal Finance

Here’s who would benefit most from student loan forgiveness

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Women

Women would be among the biggest winners of student loan forgiveness.

That’s because around two-thirds of the country’s outstanding balance is carried by women.

White women student loan borrowers owe an average of $31,300, compared with $29,900 for White male borrowers.

Meanwhile, Black women borrowers owe an average of $37,600, versus $35,700 for Black male borrowers.

People of color

Older borrowers

The government can garnish a portion of a borrower’s Social Security check if they’re in default.

“To the extent that they rely on Social Security to pay for basic needs, it is unethical for the federal government to give with one hand and take back with the other,” said higher education expert Mark Kantrowitz.

Those hit by Covid-19

It’s also many of the borrowers most burdened by student debt, including older Americans and women, who’ve suffered much of the financial fallout of the public health crisis.

“Debt cancellation would have a tremendous impact on those most impacted by the coronavirus pandemic,” said Alexis Goldstein, a senior policy analyst at Americans for Financial Reform.

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