As Americans continue to struggle with the exploding costs of higher education and crippling levels of student debt, one constituency is getting hit hardest: low-income individuals.
While student debt is an issue that impacts Americans from all income brackets, races, ages, and from every part of the country, low-income Americans face unique challenges:
Student debt has a greater impact on low-income borrowers than other Americans. In fact, borrowers in the least affluent one-fifth of American households faced education debt that averaged 24 percent of their income in 2010. The average for all households was 6 percent.
Grant aid is not nearly enough to cover the cost of college for low-income families. Even after factoring in grant aid, a family in the lowest quintile–with an average income of $17,011–would have to pay more than 70 percent of their income to cover college costs.
When starting out, students from low- and middle-income households already face a higher burden. They are less likely to have family assistance and more likely to have other pressures, such as a part-time job or family caretaking role in addition to classes. And many low-income students avoid applying to college altogether, citing the cost. This has resulted in a shrinking economic diversity at schools.