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Student-loan forgiveness will help narrow America’s racial wealth gap, new report says, but others call it ‘costly and ineffective’

Canceling student-loan debt will vastly improve Black student debtors’ lives and address the yawning racial wealth gap, a new report says.

The report authored by the Center for Law and Social Policy (CLASP) and the National Consumer Law Center (NCLC) comes on the heels of President Joe Biden considering canceling $10,000 per borrower in student loans, in an effort to address the ballooning debt levels.

“The student debt crisis is particularly dire for Black borrowers,” the authors of the report stated. 

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