Students from Black-majority areas are more likely to take out loans for higher education — and almost twice as likely to default on them — than their counterparts in White-majority zip codes, according to a report by the New York Federal Reserve. The debt-to-income ratio in those areas is also staggering, researchers said, noting an average loan balance of more than $37,000 compared to an average annual income of $38,000.
Why the troubling trend? Experts say it's a reflection of the broader economic and racial disparities that continue to plague minority communities.
Read OZY's feature about the hidden race gap in the classroom.