NAACP Urges Student Loan Forgiveness for Long Term Borrowers

WHEREAS, Student loan debt in the United States has reached a crisis level, with outstanding federal student loan debt exceeding $1.75 trillion, affecting more than 45 million Americans, and this burden falls disproportionately on Black borrowers who face greater challenges in repayment due to systemic economic inequities; and

WHEREAS, Black students are more likely to borrow larger amounts, and experience financial strain related to student loan debt than their white peers, with Black bachelor's degree graduates having nearly $25,000 more in student loan debt than their white peers four years after graduation according to data from the National Center for Education Statistics; and

WHEREAS, Due to well-documented employment discrimination, wage gaps, and systemic barriers to wealth accumulation, Black borrowers face significantly longer repayment timelines, with studies showing that 20 years after starting college, the median Black borrower still owes 95% of their original loan balance, while the median white borrower has paid down 94% of their original balance; and

WHEREAS, The racial wealth gap significantly impacts repayment capacity, with the typical white family having eight times the wealth of the typical Black family according to the Federal Reserve, meaning Black borrowers have fewer family resources to draw upon for educational expenses or loan repayment assistance; and

WHEREAS, Long-term borrowers who have been out of school for 10, 15, 20 or more years often face compounding interest, wage garnishment, and diminished credit scores that further entrench economic disadvantage despite having faithfully made payments for decades; and

WHEREAS, Many long-term borrowers have paid amounts equal to or exceeding their original principal yet remain encumbered by debt due to income-driven repayment plans with inadequate terms, administrative errors, predatory servicing practices, and periods of economic hardship; and

WHEREAS, The continued burden of student loan debt decades after graduation prevents Black Americans from achieving economic milestones such as homeownership, retirement savings, business formation, and wealth accumulation, thereby perpetuating the racial wealth gap across generations; and

WHEREAS, For-profit colleges have targeted recruitment efforts at Black communities while providing questionable educational value, leading to disproportionate enrollment of Black students in these institutions, which are associated with higher debt levels and lower completion rates; and

WHEREAS, Borrowers who attended HBCUs face unique challenges, with limited institutional endowments meaning these vital institutions cannot provide the same level of financial aid as predominantly white institutions with large endowments, resulting in higher borrowing rates among HBCU students despite the critical role these institutions play in providing educational opportunities; and

WHEREAS, Previous student loan relief efforts have not adequately addressed the unique challenges faced by long-term borrowers, particularly Black borrowers who have been repaying loans for extended periods while interest accumulation has outpaced their ability to reduce principal; and

WHEREAS, The NAACP recognizes student loan debt relief for long-term borrowers as a critical racial justice issue and recommits to advocating for policies that address the disproportionate impact of this debt on Black communities (and pursuant to earlier resolutions on equity in student borrowing, closing the racial wealth gap, home ownership, and college affordability from 2019, 2022, and 2023) through legislative advocacy, litigation, public education, and coalition-building focused on economic justice, higher education reform, racial equity, and other long-term objectives that live at the heart of the NAACP's mission.

THEREFORE, BE IT RESOLVED, that the NAACP calls for comprehensive student loan relief specifically targeting borrowers who have been out of school for 10 years or more and have made payments for at least 10 years, with complete loan forgiveness for those who have been in repayment for 20 years or more.

BE IT FURTHER RESOLVED, that the NAACP demands the removal of profit incentive from the federal student loan system.

BE IT FURTHER RESOLVED, that the NAACP advocates for an immediate end to interest capitalization and the retroactive application of interest rate caps for long-term borrowers, with mechanisms to credit borrowers for excessive interest payments made over the life of their loans.

BE IT FURTHER RESOLVED, that the NAACP must actively oppose any and all efforts by the current administration and Congress to privatize government student loan programs, limit or curtail borrowers' rights and the quality of their educational choices, better pathways to equitable and affordable education, and urges the federal government to create a simplified, automatic loan forgiveness process for borrowers who attended predatory institutions, particularly for-profit colleges that targeted Black communities with deceptive practices and poor educational outcomes, regardless of how long they have been out of school.

BE IT FURTHER RESOLVED, that the NAACP supports enhanced funding for HBCUs to reduce the debt burden on current and future students, alongside retroactive debt relief for HBCU graduates who have been out of school for extended periods and continue to struggle with student loan repayment.

BE IT FURTHER RESOLVED, that the NAACP calls for comprehensive data collection and research on the long-term effects of student loan debt on Black communities, with particular attention to how this debt affects homeownership rates, retirement security, health outcomes, and intergenerational wealth transfer.

BE IT FINALLY RESOLVED, that the NAACP supports the transition to a debt-free education model.