Price college a positive balance has always been attached to education. To improve your career potential, you often need a degree, and getting one often means paying for expensive tuition, which many people struggle with.
For many students, investing in their future is about student loan duty. But that doesn’t necessarily mean you’re stuck in debt forever or that the investment isn’t worth it. It is enough to simply study and understand your situation to make a positive and firm decision about a loan to pay for college tuition.
Overall, according to the Federal Reserve, nearly 45 million Americans had about $ 1.71 trillion in student loan debt at the end of 2020, mostly in the form of federal student loans. The statistics also show clear racial differences in who has record levels of student loan debt.
Black and Hispanic students tend to take on student loans at higher rates and in larger amounts than their white counterparts, and black borrowers, on average, have the largest amounts of debt and have the highest default rates.
Find the best lenders to refinance your student loans
As of July 10, 2021, black college graduates owe an average of $ 25,000 more in student loans than white college graduates. report researchers at EducationData.org.
In addition, over 67% of Hispanic and Latino student borrowers have educational debt. This ethnic group is the second most likely to receive private student loans – 69.4% of Hispanic and Latino students take private student loans of $ 40,000 or more – and it is the group that is most likely to delay getting married and having children from – for student loan arrears. according to the report.
So how do minorities manage to get over their student loan debt for a better financial position after high school? There are various free resources to help them find scholarships and grants to reduce their loan addiction and help them pay off student loan debt after they leave college.
For example, the Hispanic Association of Colleges and Universities, also known as HACU, provides Hispanic students with resources for finding scholarships and grants to help them pay for their higher education.
Thurgood Marshall College Fund has scholarship programs and a particular interest in black students, especially those in colleges and universities that have historically been black, also known as HBCU. United Negro College Fund or UNCF provides over 10,000 scholarships each year to support minority students as well as scholarships to 37 HBCUs, according to the organization’s website.
Here are some more resources on minority scholarships:
- Detailed information on 40 scholarships for Hispanics and Hispanics is available on the website goingmerry.com, a free financial aid and scholarship platform.
- Jackie Robinson Foundation offers four-year scholarships of up to $ 30,000 over four years under its Mentoring and Leadership Development Program for minority students seeking a bachelor’s degree.
- UNCF STEM Scholars Program provides $ 2,500 to $ 5,000 per year, depending on college year, for qualified African American students interested in science, engineering, technology, or mathematics and pursuing a career in STEM.
There are other post-college student loan debt relief options that minorities should be aware of, depending on your profession. Here are a few:
Nurse Loan Repayment Program… While there are many government grants available to pay student loans to nurses, this program is carried out nationally through the Federal Office of Resources and Health Services. It pays 85% of the outstanding nursing education debt for skilled registered nurses, advanced graduate registered nurses, or nurses who have worked full-time for at least two years either in a critical shortage area or at an appropriate nursing school.
India Health Loan Repayment Program… The program will disburse eligible student loans of up to US $ 40,000 to qualified clinicians who will sign up for two years of medical experience in American Indian and Alaska Native communities. If they decide to stay longer, members can renew their contract annually until the corresponding student loan debt is paid. Native American and Alaska Natives applying receive priority consideration.
Teacher Loan Forgiveness Program… Applicants approved for this federal program can earn up to $ 17,500 in pardon for federal subsidized and unsubsidized direct loans, including Stafford loans, if they agree to teach for five full and consecutive years at a low-income school or agency educational services. In some cases, the outstanding portion of federal or direct consolidation loans may also be eligible for forgiveness.
While not an exhaustive list, these resources are a good starting point for minority students looking to lower financial barriers to college. With access to funding sources that can minimize student loans, black, Hispanic, and other minority borrowers can make the most of their higher education investments.