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Diversity, Equity, And Student Loans: Addressing Disparities In Borrowing – Employers are currently facing a lot of pressure to deliver measurable results for diversity, equity and inclusion (DEI) initiatives. Executives have publicly pledged to promote equality, especially amid social unrest in 2020. More than 2,000 companies have pledged to join the CEO Action for Diversity & Inclusion coalition. to create an environment that is welcoming and encourages diverse perspectives. In addition, employees themselves are increasingly comparing companies based on current diversity policies and growth commitments; in fact, 70% of job seekers say the company’s commitment to DEI is important.
Furthermore, 3 out of 5 consumers want the brands they interact with to engage in conversation about social issues. With increasing pressure and expectations from employees and potential buyers, talent and HR leaders are asking themselves: “How do we attract more diverse employees?”, “How do we provide growth opportunities for underperforming teams?” and “How do we ensure diversity at all levels of our organization?”
Diversity, Equity, And Student Loans: Addressing Disparities In Borrowing
One of the first places that employers should look is their workforce education program. More than two-thirds of jobs will require some post-secondary knowledge by 2027, and employees with degrees can expect a salary increase of up to 167% compared to employees who don’t work in those regions. America’s most expensive. Underrepresented demographic groups still face challenges in accessing higher education opportunities that can promote career advancement and equal support in the workplace.
Diversity, Equity, And Inclusion Initiatives
Research shows many barriers to education for people of color. According to the National Center for Education Statistics, 15% of Hispanics and 21% of black adults have earned a Bachelor’s degree, compared with 35% of whites. Additionally, the average Black college graduate owes $7,400 more in student loan debt than their white counterparts.
And according to a recent study we conducted at Bright Horizons EdAssist Solutions, nearly two-thirds of American workers (65%) think that providing educational benefits to all employees will help promote equality. gender and racial equality in the workplace.
For companies looking to address these inequities, examining and refining workforce education programs is a great first step. Here are some recommendations for an effective program that aligns with the goals of increasing access to education, as well as equity and diversity, in your organization:
Many employers use these strategies to create successful, comprehensive educational benefit programs. For example, one company in the pharmaceutical distribution industry introduced cost-reducing degree programs with no out-of-pocket costs for employees to increase engagement. As a result, Black employee participation increased and even more than doubled that of other employees.
What Is The Average Student Loan Debt?
Similarly, a healthcare institution reviewed its education program and decided to include an option that allows employees to pay tuition upfront. Black employees use the upfront option at a rate 38% higher than white employees, and female employees use this option at a 70% higher rate than male employees.
A deliberately designed employer-sponsored education program can remove barriers and provide employees from underrepresented groups the skills they need to advance their careers, putting them on the right track. to high-demand roles with more security. This growth will improve your talent pool and strengthen your organization now and in the future.
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How Us Student Loan Debt Has Weighed Down A Generation Of Borrowers
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Student Loan Forgiveness Means A Rethink Of Higher Education
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Other unclassified cookies are those that are being analyzed and have not been classified into a category. As Americans await a decision from Washington on student loan forgiveness, student loan borrowers still owe $1.59 trillion in loans collectively, more than Americans owe them. auto loan or credit card balance.
Student loan balances are likely to stabilize in 2021, almost certainly as a result of continued repayments and a moratorium on interest starting in spring 2020 on most linked student loans. support state. Most consumers with student loan debt have taken advantage of the deferred monthly student loan payments—the moratorium lasts until August 2022. Because of federal loan debt. Currently, no interest is charged, so the accrued interest does not increase the outstanding balance.
As a result, student loan debt is barely growing in 2021, even though it was one of the fastest-growing categories of consumer debt in the few years before the pandemic. Student loan borrowers still owe a total of $1.595 trillion in loans, more than Americans owe on their auto loans or credit card balances.
Student Loan Payments Will Cut Consumer Spending, Increase Recession Odds
The 1.6% increase in total student loan debt in 2021 is much lower than the 5% to 7% annual increase since 2010.
The number of student loan accounts has barely increased as enrollment continues to decline, likely due to uncertainty surrounding the pandemic and academic schedules.
Likewise, the average student loan balance has increased less than in previous years. The 1.8% increase in average student loan balances reflects a similar change to that observed for total balances.
Scores improve in 2021, increasing by an average of five points from 689 to 694. While 20 points below the national average, the FICO is 694
Things To Know About Debt Cancellation
Scores are still considered good grades, meaning borrowers may qualify for a wider range of loans at more favorable interest rates than consumers with lower scores.
Despite a pause on mandatory student loan payments on government-backed student loans, total student loan debt increased slightly across all 50 states and Washington, D.C. Increases ranged from 0.4% in Mississippi to 4.9% in Vermont. Compared to other types of consumer debt, where some states saw double-digit increases in mortgage balances, the increase in student loan balances was much lower.
Meanwhile, other student loan borrowers have had their student loan balances cleared through the Public Service Loan Debt Relief (PSLF) program. During the payment pause, public services and other eligible borrowers still receive credit for the 120 months of payments needed to pay off the remaining balance, even though the student loan payment has was “$0” for over two years.
Combining the different programs, only 146,000 of the more than 1.3 million applicants had the rest of their student loans cleared, according to May 2022 data from the Department of Education. But the average loan amount disbursed is substantial, averaging nearly $65,000 per borrower. The $9.5 billion in student loans disbursed is a huge increase from the start of the PSLF program, when fewer than 100 applicants initially had their student loans cleared.
Secure 2.0’s Student Loan Match 101
And the number of successful disbursements is expected to increase further in the coming months, from this and smaller-scale forgiveness programs, such as those that extend to borrowers with disabilities. forever.
But even if every PSLF borrower gets relief, that could pale in comparison to how many student loan borrowers could see their loans disbursed by the federal government. Monthly federal student loan payments remain on hold until August 31, 2022. The $64,000 question for student loan borrowers: How much, if any, debt Could their existing student loans be cleared by the federal government in the coming months?
While nothing has been confirmed, as of August 2022, the most commonly discussed plan is to write off federal student loan debt of up to $10,000.
According to the data, about 29% of borrowers—about 14 million people—with education debt have student loan debt of $10,000 or less. Assuming all of that debt is a federal loan, that debt can be written off completely.
Office Of Educational Equity
Meanwhile, other borrowers may see a drop in student loan balances. In total, potentially up to $71 billion could be forgiven for those with balances of $10,000 or less, and another $319 billion for borrowers with total student loan balances of more than $10,000. .
To get credit for bills you’ve paid like utilities,
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