Biden’s student loan relief plan fails to address the ill effects of the U.S. “War on Drugs.”

Through Nina Zdinjak

In announcing his proposal to waive federal student loans, President Joe Biden said the intention is to help minimize racial wealth inequality in the United States. However, one important detail was not mentioned at the time regarding a crucial component of the plan: credit waivers for convicted drug offenders who were denied federal financial assistance, including Pell Grants.

According to the Associated Press, those who wanted to go to college after serving had no choice but to take out “larger, often predatory, private student loans.”

In 2020, the ban on Pell Grants for those serving time in prison was finally lifted, but those who borrowed prior to the lifting were “disproportionately excluded” from Biden’s plan, the report continued.

The situation is another example of the ill effects of the so-called “war on drugs” — a US legislative agenda that Biden supported back when he was a senator.

And the legislation did not affect everyone equally. Blacks and Latinos were the ones who suffered the most because they were criminalized far more often than whites.

Biden noted that America’s student loan debt burden, which tops $1.6 trillion, is particularly heavy for black and Hispanic borrowers, who, on average, have less family wealth to pay for it.

According to data from the Student Borrower Protection Center, “Black students are four times more likely than their white peers to have trouble paying off personal student debt.”

Photo by Element5 Digital via Unsplash

What is Biden’s debt relief plan?

Biden’s plan relieves about 43 million people on student debt (possibly the full balance for about 20 million Americans). Among those who qualify for debt relief, more than 60% are Pell Grant recipients.

The Department of Education should provide up to $10,000 in federal student debt relief to individuals with annual incomes of less than $125,000 or married couples with combined incomes of $250,000 or less, according to a White House statement.

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Up to $20,000 in debt relief will be made available to Pell Grant recipients.

Black borrowers were twice as likely to receive Pell Grants “compared to their white counterparts,” according to the White House.

Black student loan borrowers were twice as likely to have received Pell Grants as their white peers.

By targeting relief to Pell Grant recipients, the Biden-Harris administration’s plan will help narrow the racial wealth gap and promote racial justice.

— The White House (@WhiteHouse) August 27, 2022

What about those who have been denied Pell Grants?

The Associated Press cited sources explaining how Biden’s plan was intended to consider and address previous anti-drug legislation.

One observer, JustLeadershipUSA President DeAnna Hoskins, noted that tens of thousands of people had no choice but to take out private student loans (which carry additional risks for borrowers, including high interest rates and less protection). Ban on Pell Grants.

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“That’s why it’s so important that when decisions like this are made, the voices of people with lived experiences are present,” she said. “We can help you get the equity you want.”

This article originally appeared on Benzinga and has been republished with permission.