Biden’s reported plan to cancel student debt isn’t enough

With the simple stroke of a pen, President Biden has the unique opportunity to unlock financial freedom for countless Black Americans and low-income communities. But according to CNN reporting, he might cancel just $10,000 of student loan debt per borrower for those earning less than $125,000 a year. That would do little to help.

Black Americans have been disproportionately devastated by student loan debt. Four years after graduating, they hold an average of almost $53,000 in debt, almost double the $28,000 average White Americans hold. And they typically end up owing 6% more than they initially borrowed, while White borrowers owe 10% less. Canceling just $10,000 of debt is like pouring a bucket of ice water on a forest fire. It hardly achieves anything — only making a mere dent in the problem.

Biden must recognize and regard student debt as a racial and economic justice issue. Canceling $50,000 or more per borrower would free millions of Americans, allowing them to become more active participants in the US economy. It would also drastically reduce the racial wealth gap. And, after generations of racial oppression, it would finally open the door for so many Americans to become homeowners and generate wealth, not only for themselves, but also for their children and grandchildren.