The Vermont Connection


Racially biased funding in the United States education system has left Black and Latinx students disproportionately affected by the student debt crisis. Some educational loan lenders are using education data in the loan underwriting process, and Black and Latinx students are at risk for being wrongfully charged additional interest and fees. The United States historically excluded Black, Indigenous, and People of Color (BIPOC) communities from opportunities of social and economic mobility, and the student debt crisis perpetuates the financial disenfranchisement of BIPOC students. In this paper, I intend to discuss the racial disparities in educational loan distribution, congressional policies, alternative data usage, and the increased financial risk and vulnerability for Black and Latinx students to further highlight the financial discrimination that exists and persists in higher education.