A recent study conducted by the Center for Demography and Ecology at the University of Wisconsin-Madison finds that "the gap in student debt held by Black and White borrowers grows by 6.8% each year" and as a result, Black young adults hold 10.4% less wealth on average than their White counterparts due to differences in student-loan debt." For-profit colleges which target Black students and tend to have worse outcomes are negatively implicated in this research which indicates that "the processes that students use to both accumulate and pay down debt are racialized." This situation ensures that Black students are likely to "typically need to rely more on debt to pay for school." The study is available for review here.
The Center for Demography and Ecology at the University of Wisconsin-Madison is "a multi-disciplinary faculty research cooperative for social scientific demographic research whose membership includes sociologists, rural sociologists, economists, epidemiologists, and statisticians." Learn more about the Center here.