Page 27 - Payne Research Center ~ Money Matters

P A YN E C E N T E R . OR G
The findings in this study also highlight the disproportionate impact of student loan debt on Black borrowers:
● Black and African American college graduates owe an average of $25,000 more in student loan debt than their white counterparts and end up owing an average of 188% more four years after graduation (Education Data Initiative, 2025).
● Graduates of HBCUs have an average debt load of $32,373 after graduation—19% higher than peers at non-HBCUs (Center for Responsible Lending, 2022).
● Black young adults have substantially more debt than their white counterparts, partially explained by differences in wealth, family background, and educational experiences (National Institutes of Health, 2018).
● Black families, already disadvantaged by generational wealth disparities, rely more heavily on student debt and riskier forms of debt than white families (The Century Foundation, 2019).
● Student debt prevents many HBCU graduates from engaging in wealth-building activities like purchasing a home or investing in retirement (Center for Responsible Lending, 2022).
● Black borrowers are more likely to hold debt that exacerbates financial hardship rather than builds wealth (Pew Charitable Trusts, 2024).
These statistics underscore the importance of addressing student debt and promoting responsible credit card usage among HBCU students to support their long-term financial well-being and wealth-building potential. It is also important to note that HBCUs, as social contracts, have been shown to serve as social equalizers (Brown & Davis, 2001). This social contract is realized through the unique social networks and resources HBCUs provide, fostering a supportive environment that can mitigate the financial challenges faced by students. By equipping students with the knowledge, skills, and resources necessary for long-term financial success, HBCUs not only uphold their commitment to equitable education but also strengthen the social capital that empowers their graduates.
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