H.R. 748, the Coronavirus Aid, Relief and Economic Security Act (CARES Act), signed into law on March 27, 2020, provided for a 6-month suspension and interest waiver on federally-owned student loans. It also halted all involuntary collections on these loans. These provisions only apply to Department of Education-held loans, excluding 1.9 million Perkins Loan borrowers, 5.98 million commercially held FFEL borrowers, 1.22 million guaranty agency held FFEL borrowers, and all private student loan borrowers. Student debt exacerbates existing systemic inequities and racial disparities, preventing...
Student Loans

Student loans create debt burdens that impact families for generations. Black Americans in general, and Black and Latina women in particular -- often are forced to take on more college debt than their white counterparts in pursuit of the American Dream. The student debt burden is felt most acutely by attendees of Historically Black Colleges and Universities. CRL successfully led a coalition of advocates that achieved substantial student debt cancellation in 2022. We continue to advocate for higher education policies to protect student loan borrowers and their parents from falling into a cycle of debt that keeps them from engaging in wealth-building activities.
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Strong majorities across political parties show concern about the level of student debt in the United States and oppose the Department of Education’s (ED) and the Consumer Financial Protection Bureau's (CFPB) recent actions to weaken protections for students, according to a new poll released by Americans for Financial Reform (AFR) and the Center for Responsible Lending (CRL). The poll was conducted by the bipartisan team of Lake Research Partners and Chesapeake Beach Consulting. Key polling concerns on student loan debt crisis: Across parties, a majority of voters agree that the amount of...
The growth of outstanding student loan debt over the last decade has been staggering. Today, more than 44 million people carry over $1.5 trillion of outstanding student loan debt, an amount that exceeds all other types of non-mortgage loan debt. Two out of three graduates in the class of 2017 borrowed federal student loan debt to finance their education.2 This phenomenon is especially concerning for communities of color, as the existing wealth gap makes the burden of student loan debt particularly heavy for African American and Latino communities. Download the complete testimony submitted to...
Currently in the United States, approximately 43 million people owe over $1.4 trillion on their federal student loans. Americans owe more in student loan debt than for auto loans, credit cards, or any other non-mortgage debt.2 Student loan servicers play a critical role in these borrowers’ financial lives, from receiving and applying payments to interacting with struggling borrowers to facilitate repayment and prevent default. A competent servicer can assist financially distressed borrowers in accessing income-driven repayment (“IDR”). Unfortunately, servicer misrepresentations can increase...
While pursuing higher education is still a pathway to higher incomes over a person’s lifetime, student loan debt threatens to undermine this promise in North Carolina and nationwide. Outstanding student loan amounts have risen at an alarming rate over the past decade, and North Carolina has not been immune from this trend. Today, students and their families face a difficult decision: take on substantial debt to fill the gap between ballooning college costs and reduced grant support or forgo a college education in the face of a labor market that increasingly demands credentials and degrees. The...
Higher education has long been considered a pathway for advancement in our country. However, the playing field has not been level for low- and moderate-income families and people of color in their pursuit of a postsecondary education. Sadly, the resulting disparities in educational outcomes contribute to the persistent and growing racial wealth and income gaps. Nationwide, trends in the higher education landscape such as state disinvestment, rising college costs, the increasing necessity of college degrees in the labor market, and the loss of savings and other forms of wealth from the Great...
"Regarding State Authorization of Distance Education providers enrolling students across multiple states, we voice here our support for those provisions of the NPRM that preserve the State Authorization rules finalized in 2016 and currently in effect. The 2016 rules provide core protections to consumers and protect states’ rights to enforce their own laws in two key areas. First, the rules set requirements for reciprocity agreements that would require compacts like NC-SARA to raise their minimum uniform standards and clarify that states must retain their rights to enforce postsecondary...
Student loan borrowers of color disproportionately bear the brunt of America’s student debt crisis, and sadly, the extraordinary levels of delinquency and default across these communities is preventable. The most vulnerable student loan borrowers have a right under federal law to make affordable student loan payments—a powerful protection that should make student loan defaults extremely rare. However, mounting evidence shows that borrowers of color continue to experience extremely high rates of delinquency and default, particularly when compared to their white peers. This evidence suggests...
Until 2010, for-profit institutions constituted the fastest growing sector in higher education. Coinciding with this growth, online college courses and programs expanded rapidly, driven initially by the adoption of online technologies by huge for-profit institutions like the University of Phoenix, Grand Canyon University, and Walden University. The business model for the online component of these schools was characterized by institutional cost savings and user convenience generated by the scalable delivery of instructional material over the Internet.2 Through the ability to market and offer...
Higher education can be the gateway to a better life. Yet the rising costs of a college education and poor oversight of student loans have left some graduates and former students deep in debt—especially when enrolled in for-profit colleges. The Center for Responsible Lending (CRL) found that students of color enroll more frequently in for-profit colleges than other students, graduate at lower rates, and are left with more debt. Some schools have been accused of deliberately targeting students of color for enrollment in their predatory programs. Download the student debt factsheet. View the...