Student Loan Debt Reduces Black Home Ownership

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Marcia Fudge, appointed by President Joe Biden as Secretary of Housing and Urban Development (HUD), said one of the main problems that needs to be addressed with regard to housing capital is student loan arrears.

As explained Axios on HBOBlacks’ homeownership rates have declined, while other races have performed better.

Related Stories: Despite Strong Economy, Black State Continues Struggle

“Part of our problem is that we never fully applied Fair Housing ActFudge replied. “This is why we do things like help homeowners, why we solve the student loan problem, why we look at how loans are distributed. For people of color, especially blacks, home ownership is wealth. For us, this is not only wealth, but also the wealth of generations. “

“Who has student debt? Poor people, black people, brown people, ”Fudge added. “We are the people with the most debts. And so the system is already leaning towards not being creditworthy. “

Report from Hill shows that 1,000 people surveyed said student loans affect their spending habits, especially when making riskier decisions like buying a home.

Thirty-five percent of students, regardless of race, who are in debt have stopped repaying their loans, and the remaining 64 percent have cut their payments.

One of the presidential campaign promises is to write off loans worth 10 thousand dollars to people. The survey results show that some are confident that he will keep it (44.8 percent), some believe that the promise will not be fulfilled (31.8 percent), and some are indifferent or not sure what to believe (23.4 percent).

As BLACK ENTERPRISE Earlier it was reported that home ownership is growing among all millennials, including blacks. In the second quarter of 2020, the shortage of people owning a home rose to 47 percent. In the first quarter, 44 percent.

However, there is a gap in the homeowner’s interest rate of between 20 and 30 percent among blacks and whites that has persisted for over 100 years.



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