President Joe Biden says he hopes his proposal to forgive federal student loans will narrow the nation’s racial wealth gap. But a generation of Black and Hispanic Americans was disproportionately shut out of one of the keys to Biden’s plan: the Pell Grant program.
What You Need To Know
- Many former drug offenders had access to federal student loans delayed or denied
- As a U.S. senator, Joe Biden championed the anti-crime legislative agenda
- Because they didn't qualify for Pell Grants or federal aid, they won't have debt forgiven
- Black and Latino men were the people most harmed by those policies
As part of the “war on drugs” — a consequential, anti-crime legislative agenda that Biden championed as a U.S. senator — an estimated hundreds of thousands of convicted drug offenders had their access to federal financial aid delayed or denied, including Pell Grants and student loans. If they wanted to go to college after their prison terms ended, these offenders had to take on larger, often predatory, private student loans.
Some were discouraged from seeking federal aid by a requirement to disclose their drug record on financial aid applications, while others put off attending college or dropped out entirely.
The people most harmed by these policies: Black and Latino men, thanks to drug laws in the 1990s with harsh punishments for crack cocaine and marijuana offenses. Incarceration rates for men of color skyrocketed. The policies remained in place for 25 years, until Congress repealed the Pell Grant ban in 2020.
America’s student loan debt burden, which now tops $1.6 trillion, “is especially heavy on Black and Hispanic borrowers, who on average have less family wealth to pay for it,” Biden said last week as he announced the forgiveness plan.
The administration has offered to forgive up to $10,000 in student debt for individuals earning annual incomes of less than $125,000, or less than $250,000 for families. And its offer doubles the debt relief to $20,000 for borrowers who also received Pell Grants, a federal program that gives the neediest undergraduates aid that they don’t have to repay.
Studies show that Pell Grants — one of the nation’s most effective financial aid programs — routinely help more than half of Black students and almost half of Hispanic students afford college. According to the White House, among the 43 million borrowers who are eligible for debt relief under Biden’s plan, more than 60% are Pell Grant recipients.
The White House said in a statement to The Associated Press that the student debt relief plan will wipe away about half of the average debt held by Black and Hispanic borrowers, not counting the additional $10,000 cancellation for Pell Grant recipients.
In a speech Tuesday, after the AP story published, Biden said people leaving prison need help to successfully reenter society.
“If you served your time, you shouldn’t be deprived of being able to get a Pell Grant to go to school,” Biden said in remarks at Wilkes University in Pennsylvania on his administration’s plans to prevent crime. “You should be able to get a degree -- that’s the best thing you can do.”
Amid debate over whether Biden’s forgiveness plan goes far enough for disproportionately indebted communities, criminal justice reform advocates say the president’s solutions to the student debt crisis must be as comprehensive as the anti-drug laws were.
“I think there’s a particular onus on this administration and on this president to be part of the solution for issues that he was very deeply involved in,” said Melissa Moore, the director of civil systems reform at Drug Policy Alliance.
There’s a generation of former drug offenders who borrowed to pay for school, but don’t have Pell Grants or federal loans, and won’t have any of their student debt forgiven. According to a Student Borrower Protection Center report on private loan debt, Black students are four times as likely as white students to struggle in repayment of private loans.
“For people who previously would have had to check that box, there should be some mechanism by which, if you were excluded in the past, you are prioritized now for relief,” Moore said.
An AP review last year of federal and state incarceration data showed that, between 1975 and 2019, the U.S. prison population jumped from 240,593 to 1.43 million Americans, as a result of the war on drugs that President Richard Nixon declared in 1971. About 1 in 5 people were incarcerated with a drug offense listed as their most serious crime.