The lasting impact of COVID-19 has set back millions of Americans financially – especially BIPOC and women as reports indicate. The Seattle Medium recently summarized a new report by the Center for Responsible Lending (CRL) stating that among those affected by the pandemic, Black women disproportionately lost their ability to repay outstanding student debt as a result. With women and communities of color already bearing the brunt of student loans, the pandemic only made matters worse.

“The report painted a stark picture for women now and as they continue recovery efforts into the future. Key findings include:
- Due to increased childcare responsibilities, as well as the high-contact, low-wage nature of many women’s occupations, women of color and women who could not work remotely have less job security today than pre-pandemic.
- The economic gains made through 2021 were not shared equally across racial groups. Women of color continue to experience difficulty paying for necessities such as food and housing.
- Student loan debt burdens remain at staggering levels, despite the payment pause. Black women and Latina borrowers typically have higher student loan balances than white women, making repayment more difficult.
- Although the focus group participants found the student loan payment pause helpful, they worry about their ability to start paying again once payments resume.
- Because of their difficulties in repaying student loans, women are reluctant to incur more student loan debt for themselves or their children.”

Debt forgiveness is a racial and gender justice issue, and we have to treat it like one. Women currently hold two-thirds of all federal student loan debt – this burden weighs heavily on women of color especially, widening both gender and racial wealth gaps in the U.S.

Read the full article here.