The Student Loan Wealth Drain That Hits Black Borrowers Hardest

Student debt is often described as a universal burden, but the data reveals a stark racial wealth gap hidden inside the loan system. In this episode, Lucas and Luna examine how the structure of federal student loans — from interest accrual to income-driven repayment — systematically extracts wealth from Black borrowers. They break down the numbers: a typical Black borrower owes $52,000 four years after graduation, compared to $28,000 for white borrowers, even when controlling for degree type. They trace the mechanics: how interest capitalizes during forbearance, how the public service loan forgiveness program has a 2% approval rate for Black applicants, and how the wealth gap compounds across generations. The hosts also explore a specific policy proposal — tying interest rates to borrower income — and ask whether the current system is designed to collect rather than educate. #StudentLoans #WealthGap #RacialEquity #BlackBorrowers #StudentDebtCrisis #IncomeDrivenRepayment #PublicServiceLoanForgiveness #InterestCapitalization #GenerationalWealth #FederalStudentLoans #BorrowerDefense #EconomicJustice #EducationPolicy #WealthInequality #Economics #FexingoBusiness #BusinessPodcast #InequalityConversations Keep every episode free: buymeacoffee.com/fexingo