Student loan debt, an ongoing challenge for Communities of Color, has been exacerbated by sweeping 2025 legislative and policy changes under the current administration. This signals a fundamental shift in how higher education is financed and governed. From an Executive Order dismantling the Department of Education (ED) to massive reductions in federal student loan funding, the current administration has made extensive efforts to strip ED of critical resources. These disruptions have not only weakened support systems within institutions of higher education but also greatly destabilized borrowers, many of whom already struggle to pay down sizable student loan balances.

Latinx borrowers are disproportionately burdened by student loan debt due to systemic inequities in education, income, and access to financial resources. They graduate with student loans at rates comparable to or higher than their White peers, while significantly exceeding those of Asian graduates. Despite increased college enrollment, Latinx students often attend community colleges and for-profit institutions and receive less financial aid, leading to greater loan reliance. Though their initial debt may be lower, slower post-graduation earnings result in prolonged repayment struggles.

The Crisis We Choose to Ignore: Why Canceling Student Debt is Both a Moral and Economic Imperative

Over the past two decades, the federal government has taken huge financial strides to stabilize the economy during moments of profound crisis in the U.S. From the 2008 Great Recession to the COVID-19 pandemic, these notable moments of federal intervention reveal a stark contradiction in how the government decides which crises warrant sweeping action — and which do not.