by Kenneth Schortgen, Shotgun Economics:

If there is one person to blame in the growing epidemic of high student loan debt it can be squarely placed at the feet of the former President Barack Obama. This is because his nationalization of Sallie Mae back in 2010 has not only led universities to increase education costs several fold knowing that the government is backstopping the loans, but also the ease and scope in which students could borrow with government underwriting almost ensured they would be bound by the yoke of debt for decades.

Average student loan debt at graduation – through 2015

Yet when we go back to look at the root of high priced education and who is responsible for the growing number of student loan defaults, it should not be surprising that researchers want to pull out the Race Card and put the problem squarely on the tired old cliche of minorities being the victims.

The average defaulter is more likely to live in Hispanic and black neighborhoods, Blagg found. Her previous research has shown that minorities are more burdened by their education debt because their parents have a lower net wealth as well as higher rates of unemployment. These neighborhoods also have a median income of around $50,000, compared with $60,000 for non-defaulters. – Zerohedge

Now unless the parents of these ‘minority’ students are co-signing for their student loans, this argument doesn’t carry any water since the majority of white and Asian student debt holders are in the exact same boat.

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