Morehouse College, a historically Black college in Atlanta, Georgia, has made a significant move to empower its Black graduates by canceling nearly $10 million in student debt. Over 2,700 former students of Morehouse College benefited from this cancellation, thanks to the efforts of the Debt Collective, a debtors’ union advocating for the abolition of student debt.
The debts canceled were accumulated by thousands of accounts from the fall 2022 semester and previous years, and they owed a total of $9.7 million to Morehouse College. The entire balance was transferred to the Debt Collective and its sister organization, the Rolling Jubilee Fund. Subsequently, the debts were canceled as an unconditional gift, enabling the affected students, mostly Black men, to receive their diplomas, access their transcripts, pursue further education, and move forward in their lives.
The Debt Collective, self-proclaimed as the nation’s first debtors’ union, aims to have debts canceled and abolished. They believe that burdening communities, especially Black HBCU graduates, with exorbitant amounts of student debt undermines the promise of education. The spokesperson for the Debt Collective, Braxton Brewington, highlighted that the student debt cancellation of nearly $10 million will put thousands of Black individuals in a better position to save for retirement, purchase homes, or start their own small businesses.
The statistics regarding student debt among Black students in the United States are alarming. In 2019, the Legal Defense Fund reported that 86% of Black students relied on student loans to fund their education, with an average debt of $39,500. Additionally, a study conducted by the Federal Reserve in 2022 revealed that 57% of Black student loan borrowers had accumulated at least $25,000 in debt from their education.
This is not the first time the Debt Collective has come to the aid of Black students and graduates. Earlier this year, they purchased $1.7 million of unpaid student debt for 462 women who attended Bennett College, a women’s HBCU. Some of the debts dated back as far as 1996.
While the recent debt forgiveness by the Debt Collective is undoubtedly a cause for celebration, it is important to note that the debts canceled were not federal loans, but money owed directly to Morehouse College. The Debt Collective emphasized that they are doing their part because President Joe Biden has yet to fulfill his promise of widespread student debt forgiveness.
During his 2020 campaign, President Biden proposed forgiving all undergraduate tuition-related federal student debt for debt-holders earning up to $125,000, including federal loans for private HBCUs and Minority-Serving Institutions. However, the Supreme Court struck down his broad forgiveness plan, amounting to over $400 billion in federal student loans. As a result, interest and loan payments have resumed, and the administration introduced the Saving on an Affordable Education (SAVE) plan, formerly the Revised Pay as You Earn income-driven repayment plan.
Nevertheless, President Biden remains committed to achieving debt relief for student loan borrowers. The administration and the Department of Education are actively pursuing a new path to debt relief through the Higher Education Act of 1965, which includes policy considerations.
Morehouse College acknowledged these recent developments and President Biden’s promises in their statement, remarking on the tremendous power the executive branch holds to eliminate the burden of student loans. The recent debt cancellation serves as a reminder of the potential impact and the ongoing need for comprehensive solutions to address the student debt crisis in the United States.
In conclusion, Morehouse College’s decision to cancel nearly $10 million in student debt is a significant step in empowering Black graduates and alleviating the financial burdens they face. While it is not a federal loan forgiveness, it provides much-needed relief, enabling thousands of individuals to pursue their goals and dreams without the weight of student debt holding them back.
