Minority Students Hardest Hit By Student Loans

Report shows student loan debt affects Latino and African-American students the most

Minority Students Hardest Hit By Student Loans
September 22, 2025

The Consumer Financial Protection Bureau’s recent report shows that minority students, especially Latino or African-American, struggle most with student loan debt. New research shows that the amount of debt these individuals have had to take on to attend college may be more disproportionate than believed.

Members of these communities were also affected by the 2008 recession, and many continue to struggle with their income. Many of these families lost up to half of their net worth, making it difficult, if not impossible, to pay for their children’s college tuition.

Another issue affecting these students and their debt is that many minority students attend for-profit schools. These schools often have higher tuition costs and require students or their families to take on more of the financial burden.

This debt often impacts on other debt and, according to the CFPB, makes it difficult later for minority students to buy homes or automobiles. Many default on their loans or become delinquent despite the fact that there are a variety of repayment options they can take advantage of.

Members of Congress have taken up the fight for students and, in particular, minorities who face crippling student loan debt. Democratic Representative, Maxine Waters of California, believes that the disproportionate amount of debt Latino and African-Americans face widens the economic gap that exists between races. Waters also states that she believes the CFPB may be able to help address these issues.
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