National

Even Though Blacks Borrow More for College, Enrollment Declines

Published

11 years ago

July 28, 2015

Johnny Taylor, the president and CEO of the Thurgood Marshall College Fund (TMCF), speaks during the TMCF 26th Annual Awards Gala in Washington, D.C. (Freddie Allen/NNPA News Wire)

By Freddie Allen
Senior Washington Correspondent

WASHINGTON (NNPA) – Recognizing that a college degree is one of the surest paths to a job and economic security, Black families are taking on more student loan debt than White and Hispanic families, according to a new report by Wells Fargo.

According to the report, student loan debt increased by roughly 97 percent between the 1995-1996 school year and 2015 and Black undergraduates that started school during the 2011-2012 school year can expect to borrow $28,400 for a four-year bachelor’s degree compared to Hispanics who will borrow $27,600.

The total price of attendance for Black full-time students increased 115.4 percent during the 2011-2012 school year compared to the 1995-1996 school year and White students experience 113.6 percent jump over the same time period.

The report stated, “The average out-of-pocket net price (which is the price after aid plus student loans) increased 88.7 percent for Blacks, 80.8 percent for Asians and 74.7 percent for Whites between the 2011 and 2012 school year compared to the 1995 and 1996 school year.”

In addition, the report found that more than 60 percent of Black undergraduate students qualify “for some type of aid from the federal government” compared to 50 percent of Hispanics and 34 percent of Whites and Asians.

John Rasmussen, the president of personal lending and the head Education Financial Services at Wells Fargo said that two primary realities often frame the conversation about higher education: student loan debt and the growing costs associated with earning a degree.

“The outstanding amount of student loan debt has now exceeded $1.2 trillion,” said Rasmussen. “That is larger than credit card debt and automobile debt.”

He also noted that the cost of college over the past 20 or 25 years has increased at a pace that is significantly faster than inflation.

“Families are trying to be really practical,” said Rasmussen. “Trying to keep costs down now, staying in state more, exploring community college options, and asking tough questions like, ‘Are my kids ready to go to college?’”

Rasmussen added that students and families want federal loan programs that are easier to navigate, better information about the true costs of federal loans and what families can expect for outcomes like graduation rates, job placement rates and salary and earnings and the repayment performance of students.

Even though Blacks are taking on more student loan debt, in recent years that increased burden has delivered mixed results on enrollment rates.

A 2014 report by the Wells Fargo Securities, LLC Economics Group, that linked educational attainment to economic success, found that Black enrollment in degree-granting institutions has increased considerably since the Great Recession, but that enrollment rate “slowed down noticeably in 2011 and 2012.”

The report said, “This slowdown in Black enrollment in degree-granting institutions plus the strong increase in the enrollment of Hispanics has helped push the Hispanic rate above the Black rate for the first time since the early part of the 1970s.”

Still, economists and education advocates agree that a college education continues to be a sound investment, despite the cost.

“Not only do you have the ability to improve your earning potential over your life, you also are employed over a longer period of time and you’re more likely to keep your job during a recession,” said Eugenio Alemán, a senior economist with Wells Fargo.

The 2014 report cited research that showed that individuals that obtained a bachelor’s degree earned a median income of $50,360, compared to people who finished high school that earned $29,423.

“An associate’s degree leads to a median income of $38,607, more than $9,000 higher than a high school diploma. Those with a graduate degree have a median income of $68,064, 35.2 percent more than those with a bachelor’s degree,’” the 2014 report said.

Even though Blacks 18-24 years old ranked last in enrollment at degree-seeking institutions in 2012 (36.4 percent vs. 42.1 percent of Whites and 37.5 percent of Hispanics), Blacks 18-26 years-old who earned bachelor’s degrees or more, were unemployed just 4.6 percent of weeks from 1998-2011. Blacks (18-26 years-old) who only earned a high school diploma were unemployed nearly three times as long (12.6 percent of weeks) during that time period.

Whites 18-26 years old, who entered the labor market with bachelor’s degree or higher, were unemployed 2.8 percent of weeks between 1998 and 2011, compared to White high school graduates with no college experience who were unemployed 6.8 percent of weeks.

Rasmussen fears that all of the noise in the mainstream media questioning the value of college will have a negative effect on the Black community.

“We need to be really careful on our messaging around the costs, so that kids and families don’t give up hope,” he said. “It takes work and effort and if people view that it’s not worth the effort, then we will have this unintended consequence of underrepresentation of kids of color going to school.

Johnny C. Taylor, Jr., the president and CEO of the Thurgood Marshall College Fund, agreed.

“If the message in high schools is consistently ‘Don’t go to college, because it’s too expensive and you’re going to take on all of this debt and you should just go and get a job,’ America is going to have a real challenge as it browns and grays at once,” said Taylor. “Twenty years from now, when you look around and say, ‘There are no African Americans in leadership roles within industry, within government, within any job that requires a bachelor’s degree,’” it will be because people who criticized the high costs of college talked the Black community out of going to college.”

Taylor continued: “The reality is that college is still a great investment.”

Oakland Post

Posts by Oakland Post

Up Next

Baltimore Riots: Emails Between City Leaders Show Chaos, Confusion

Don't Miss

Claudia Alexander, NASA Manager Who Led Jupiter Mission, Dies at 56

Oakland Post

Click to comment

Activism

Oakland Post: Week of February 11 = 17, 2026

The printed Weekly Edition of the Oakland Post: Week of – February 11 – 17, 2026

Published

10 hours ago

February 16, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Advice

Rising Optimism Among Small And Middle Market Business Leaders Suggests Growth for California

“Business leaders across the Pacific region continue to demonstrate a unique blend of resilience and forward-thinking, even in the face of ongoing economic uncertainty,” said Brennon Crist, Managing Director and Head of the Pacific Segment, Commercial Banking, J.P. Morgan. “Their commitment to innovation and growth is evident in the way they adapt to challenges and seize new opportunities. It’s this spirit that keeps our region at the forefront of business leadership and progress. We look forward to helping our clients navigate all that’s ahead in 2026.”

Published

2 days ago

February 14, 2026

Oakland Post

Super Scout / E+ with Getty Images.

Sponsored by JPMorganChase

Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.

The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.

Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.

Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in California. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity this year:

Inflation remains the top concern for small business owners. Following the 2024 U.S. presidential election, many anticipated a favorable business environment. By June 2025, however, that feeling shifted amid concerns about political dynamics, tariffs, evolving regulations and global economic headwinds.
Going into 2026, 37% of respondents cited inflation as their top concern. Rising taxes came in second at 27% and the impact of tariffs was third at 22%. Other concerns included managing cash flow, hiring and labor costs.

For middle market leaders, uncertainty remains an issue. Almost half (49%) of all midsize business leaders surveyed cited “economic uncertainty” as their top concern – even with an improved outlook from a few months ago. Revenue and sales growth was second at 33%, while tariffs and labor both were third at 31%.
And tariffs are impacting businesses costs. Sixty-one percent of midsize business leaders said tariffs have had a negative impact on the cost of doing business.
Despite challenges, leaders are bullish on their own enterprises. Though the overall outlook is mixed, 74% of small business owners and 71% of middle market companies are optimistic about their company’s prospects for 2026.
Adaption is the theme. For small business owners surveyed across the U.S., responding to continuing pressures is important in 2026. Building cash reserves (47%), renegotiating supplier terms (36%) and ramping up investments in marketing and technology are among the top priorities.
Big plans are on the horizon. A majority midsized company leaders expect revenue growth this year, and nearly three out of five of (58%) plan to introduce new products or services in the coming year, while 53% look to expand into new domestic and/or international markets. Forty-nine percentsay they’re pursuing strategic partnerships or investments.

The bottom line

Rebounding optimism among U.S. business leaders at the start of the year is setting the stage for an active 2026. With business leaders looking to implement ambitious growth plans that position themselves for the future, momentum in California could be beneficial for leaders looking to launch, grow or scale their business this year.

Oakland Post

Posts by Oakland Post

#NNPA BlackPress

COMMENTARY: The National Protest Must Be Accompanied with Our Votes

Just as Trump is gathering election data like having the FBI take all the election data in Georgia from the 2020 election, so must we organize in preparation for the coming primary season to have the right people on ballots in each Republican district, so that we can regain control of the House of Representatives and by doing so, restore the separation of powers and balance that our democracy is being deprived of.

Published

6 days ago

February 10, 2026

Oakland Post

Dr. John E. Warren, Publisher San Diego Voice & Viewpoint Newspaper. File photo..

By Dr. John E. Warren, Publisher San Diego Voice & Viewpoint Newspaper

As thousands of Americans march every week in cities across this great nation, it must be remembered that the protest without the vote is of no concern to Donald Trump and his administration.

In every city, there is a personal connection to the U.S. Congress. In too many cases, the member of Congress representing the people of that city and the congressional district in which it sits, is a Republican. It is the Republicans who are giving silent support to the destructive actions of those persons like the U.S. Attorney General, the Director of Homeland Security, and the National Intelligence Director, who are carrying out the revenge campaign of the President rather than upholding the oath of office each of them took “to Defend The Constitution of the United States.”

In California, the primary comes in June 2026. The congressional races must be a priority just as much as the local election of people has been so important in keeping ICE from acquiring facilities to build more prisons around the country.

“We the People” are winning this battle, even though it might not look like it. Each of us must get involved now, right where we are.

In this Black History month, it is important to remember that all we have accomplished in this nation has been “in spite of” and not “because of.” Frederick Douglas said, “Power concedes nothing without a struggle.”

Today, the struggle is to maintain our very institutions and history. Our strength in this struggle rests in our “collectiveness.” Our newspapers and journalists are at the greatest risk. We must not personally add to the attack by ignoring those who have been our very foundation, our Black press.

Are you spending your dollars this Black History Month with those who salute and honor contributions by supporting those who tell our stories? Remember that silence is the same as consent and support for the opposition. Where do you stand and where will your dollars go?