Student Loan Debt

Americans, in total, owe nearly $1.75 billion in student loan debt, with more than 44 million people owing, according to a 2020 NAACP report. Though President Joe Biden announced on April 6 that he will again extend relief for federal borrowers, pushing the payment start date back to Sept. 1, his administration hasn’t yet taken any substantial steps toward permanent relief. That leaves many Americans stuck with thousands of dollars of debt, hindering their abilities to plan for the future and invest in assets that would help grow intergenerational wealth. This is particularly damaging for Black Americans, as systemic inequities often hinder the ability to compete on a level playing field in the workplace.

College is more expensive—and important—than ever before. Some 44 million Americans collectively hold nearly $1.6 trillion in student debt. And these numbers are growing. This decade alone, college costs increased by 25% and student debt increased by 107%. Today, college graduates earn 80% more than those with just a high school diploma. That dichotomy is putting students in a difficult situation: Do they risk going into crippling debt at the beginning of their adult lives in the hope the investment turns into a career financial stability that goes with it?

Paying for college isn't easy. Consumer Reports' financial expert shows you how to maximize aid when paying for higher education.

Going to college in America ain't cheap with each semester costing thousands upon thousands of dollars. How do American students pay for this and how did the price tag get so high?