Individuals with advanced degrees are expected to experience some of the smallest reductions in student loan holding, varying from 1.6 to 3.2 percentage points across race and ethnic groups. These reductions are also small compared to the percentage who held any student debt before forgiveness.
The likely reasons for the differences by education: larger amounts of debt or higher incomes making them ineligible for loan forgiveness. Advanced-degree holders on average had higher student debt ($69,000) than associate-degree holders ($22,000).
Based on income, the share of advanced-degree holders with student debt eligible for debt forgiveness ranges from 75.6% of non-Hispanics who are neither Black nor White to 85.6% of Black borrowers. People who are neither Black nor White include Asian, American Indian or Alaska Native, Native Hawaiian or Other Pacific Islander and mixed-race individuals.
However, over 90% of borrowers with an associate degree in all race groups would qualify.
Women typically earn less than men and are more likely to not only have student debt but to owe more than men. As a result, they may have a harder time paying off student loans.
It’s estimated Black and Hispanic women are expected to experience some of the largest reductions in the percentage with any student loans from the $10,000 relief plan: 5.4 and 4.7 percentage points, respectively.
White men are expected to experience among the smallest reductions (2.4 percentage points).