The Importance of Addressing the Student Debt Crisis

The Importance of Addressing the Student Debt Crisis

Did you know that under the weight of an estimated $35B in student loan debt, Black women face the greatest threat to building generational wealth?

On Juneteenth 2023, I had the opportunity to have an enlightening conversation with Briana "Bri" Franklin, the founder of The Prosp(a)rity Project , a non-profit aimed at closing the generational wealth gap for Black women perpetuated by the predatory lending crisis.

Our discussion, which you can watch below, centered around our respective college experiences and the stark contrasts that highlight the deeply rooted issues within the U.S. education system.

Bri's Story: The Harsh Realities of Student Debt

Bri shared her journey of attending an Ivy League school, where she was initially filled with the promise of boundless opportunities and a path to success. However, her experience was far from what she had envisioned. Despite being academically gifted, Bri found herself underprepared and struggling to keep up. What she didn't fully comprehend at the time was the crippling financial burden she was accumulating.

By the time Bri graduated, she had amassed a staggering $100,000 in student debt. The true impact of this debt didn't hit her until a couple of years later when she found herself unable to secure a steady, lucrative income. The private lenders demanded their monthly payments of $750, regardless of her financial situation. Bri's credit score plummeted, and her co-signers faced the consequences of her missed payments.

My Story: Privilege Compounded

In contrast, I shared my own college experience, which was vastly different due to the privileges I had. Growing up in a family with generational wealth, my education was fully funded by a trust established by my grandfather. From a young age, I knew that I would graduate debt-free, an opportunity that should be extended to every student worldwide.

Additionally, I attended a private school that prepared me for college from kindergarten, including intensive preparation for standardized tests like the SAT. This level of preparation is not accessible to many students, perpetuating inequalities in the education system.

The Structural Issues and the Need for Systemic Change

Our discussion highlighted the deep-rooted structural issues within the education system and the broader societal inequalities. The GI Bill, intended to provide educational opportunities for veterans, disproportionately benefited white soldiers, while many Black soldiers faced barriers in accessing these benefits.

Moreover, discriminatory lending practices in housing, as detailed in the book "The Color of Law," excluded a significant portion of Black Americans from building generational wealth through homeownership. These systemic barriers have contributed to the generational wealth gap the Prosp(a)rity Project aims to address.

The Prosp(a)rity Project: Providing a Path Forward

The Prosp(a)rity Project offers a comprehensive solution to combat the student debt crisis faced by Black women. By modifying behaviors and building financial literacy, the program empowers Black women to break free from the shackles of student debt and set themselves on a path to long-term wealth-building.

You can support The Prosp(a)rity Project's mission by donating at https://www.theprosparityproject.org/donate. Even small contributions can make a significant difference in helping to close the generational wealth gap created by the predatory lending crisis.

Additionally, spreading awareness through social media platforms can amplify the organization's reach and connect more volunteers and donors to the cause.

Education as a Path to Equity and Opportunity

Our education system should be a catalyst for equity and opportunity, not a perpetuator of economic inequality. By addressing the student debt crisis and providing accessible and affordable education, we can create a society where everyone, regardless of their background, has the chance to succeed.


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Long Nguyen

Owner & Founder Of A Multi-Million Dollar Business | Accounting & Finance Major | Future CPA

2 个月

Why is that we save up for a down payment for a home or even a car but when it comes to higher education we push young adults to jump into it straight away with little to no financial backing as well as no financial literacy. I don’t believe that a majority of high school graduates know the impact of taking out a loan that depending on their major and school is going to be with them for ever and even after 20 years or so they look at the remaining student debt and realize they only been paying the interest and put a small dent on the principle. Most kids out of high school have no clue what they want to do with their lives. I think it would be extremely beneficial if they were to take a year of even a few to explore what they love about life and find their passions while working and earning some money. We could push for loans to not be so predatory but I’m trying to be realistic here. If we take 2 students who (1) work a year or 2 before attending and saved some money. Vs (2) jumped straight into school with little savings. The few thousand student 1 puts towards their loan. May seem miniscule but in the long run. Student 1 is paying tens of thousand less over the loan term.

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Jon Pederson, A-CSM TKP

Scrum Master and Agile Coach

5 个月

I seldom see any discussion about why tuition has to be so high at colleges and universities, and rising faster than the rate of inflation. Is that immovable, or are people letting higher ed off the hook with their pricing?

Raghupradeep Nair, Ph.D

Senior Manager - Learning & Development @ Amrita Vishwa Vidyapeetham | Career Competency Development | Training Program Development | Learning Strategy | Performance Improvement | Research Supervisor | 28+ Years Exp |

5 个月

Kim Scott student debt crisis is a complex issue that requires a comprehensive approach to resolve. By implementing policy changes, increasing access to affordable education, enhancing financial literacy, addressing structural inequalities, and supporting community initiatives, we can create a more equitable education system that offers genuine opportunities for all individuals, regardless of their background. This holistic approach is essential for closing the generational wealth gap and fostering long-term economic stability and equity.

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