The Institute on Assets and Social Policy (IASP) develop an analysis, "Less Debt, More Equity: Lowering Student Debt While Closing the Black-White Wealth Gap," which assesses the effect of public policy on the wealth gap that exists between white and Black households. Wealth inequity has surged over the past several decades, resulting in 1 percent of households controlling 42 percent of U.S. wealth. Also, nearly 50 percent of wealth accumulated over the past three decades has gone directly to pockets of the top 0.1.
Meanwhile, the wealth belonging to the bottom 90 percent of U.S. household continues to lessen. People of color, who are historically disenfranchised and overrepresented in the bottom 90 percent, are growing in numbers. In a matter of short decades, the U.S. will be a "minority majority" nation, which will continue to be affected by preexisting wealth divide. Today, the average white family owns $13 for every $1 held by the average black household and white households own $10 for every $1 held by the average U.S. Latino household.
According to the report, black students tend to take on more debt when attaining postsecondary degrees. They, like other students of color, are more likely to borrow money to attend college, which deepens wealth inequalities. With that said, patterns of student debt differ for black and Latinos students. The report focuses specifically on the black-white wealth gap because of historic roots of inequality and student debt's contribution to wealth disparities, but also acknowledges how inequality influences the experiences of other communities of color in the U.S.
Loan debt and barriers to education impact Latinos differently than black and white households. The data revealed that Latinos attend and graduate from college at lower rates than whites and blacks. Consequently, lower rates of college attendance likely contribute to Latino households owning less student loan debt than blacks and whites. Also, evidence suggests that Latino students are more opposed to taking on student loan debt. Interestingly, Latino students are less likely than blacks and whites to take on debt at public institutions, but they're more likely to take on debt at private for-profit institutions, where they're more likely to depart before completion.
The Latino-white wealth gap could be attributed to differences in education attainment. Latinos households have lower college completion rates and lower levels of household wealth. The report suggests that universal debt reduction policies targeted at borrowers making $50,000 and below would only benefit Latinos moderately; instead white families would have greatly benefit. However, reduction policy targeted at those making $25,000 or less would reduce the racial wealth gap for median and low-wealth Latino households. Latinos in the lowest wealth bracket tend to face a number of barriers when seeking higher education, which reduces the likelihood that they will start college or take out loans. Thus, eliminating some cost challenges should spur enrollment.
The report listed that a number of policies that could make a sizable difference in the lives of students of color. They believe debt-free public higher education should be guaranteed for low-income and middle-class students. Institutional accountability and debt forgiveness should be provided for students attending low-quality institutions. There should be incremental debt forgiveness for students locked into public, low-wage professionals. Also, student loans should be discharged in bankruptcy like other forms of consumer debt.
Source: Published originally on LatinPost.com as Low-Income Latino Students Less Likely to Take on Student Debt, Attend College: Report, by By Nicole Akoukou Thompson, December 1, 2015.
- Author: New York Times
An estimated net 1.2 million Americans of the 35 million Americans identified in 2000 as of “Hispanic, Latino or Spanish origin,” as the census form puts it, changed their race from “some other race” to “white” between the 2000 and 2010 censuses, according to research presented at an annual meeting of the Population Association of America and reported by Pew Research.
The researchers, who have not yet published their findings, compared individual census forms from the 2000 and 2010 censuses. They found that millions of Americans answered the census questions about race and ethnicity differently in 2000 and 2010. The largest shifts were among Americans of Hispanic origin, who are the nation's fastest growing ethnic group by total numbers.
Race is an immutable characteristic for many white, black and Asian-Americans. It is less clear for Americans of Hispanic origin. The census form asks two questions about race and ethnicity: one about whether individuals are of Hispanic or Latino origin, and another about race. “Hispanics” do not constitute a race, according to the census, and so 37 percent of Hispanics, presumably dissatisfied with options like “white” or “black,” selected “some other race.”
The researchers found that 2.5 million Americans of Hispanic origin, or approximately 7 percent of the 35 million Americans of Hispanic origin in 2000, changed their race from “some other race” in 2000 to “white” in 2010. An additional 1.3 million people switched in the other direction. A noteworthy but unspecified share of the change came from children who weren't old enough to fill out a form in 2000, but chose for themselves in 2010.
The data provide new evidence consistent with the theory that Hispanics may assimilate as white Americans, like the Italians or Irish, who were not universally considered to be white. It is particularly significant that the shift toward white identification withstood a decade of debate over immigration and the country's exploding Hispanic population, which might have been expected to inculcate or reinforce a sense of Hispanic identity, or draw attention to divisions that remain between Hispanics and non-Hispanic white Americans. Research suggests that Hispanics who have experienced discrimination are less likely to identify as white.
The data also call into question whether America is destined to become a so-called minority-majority nation, where whites represent a minority of the nation's population. Those projections assume that Hispanics aren't white, but if Hispanics ultimately identify as white Americans, then whites will remain the majority for the foreseeable future.
White identification is not necessarily a sign that Hispanics consider themselves white. Many or even most might identify their race as “Hispanic” if it were an explicit option. But white identification may still be an indicator of assimilation. White identifiers are likelier to be second- and third-generation Hispanics than foreign-born and noncitizen Hispanics. They also have higher levels of education and income. The researchers' data did not show the country of origin of the families of those people who shifted their identification.
The results are a strong sign that fears of a unique “Hispanic challenge,” where Hispanics immigrants might remain as a permanent Spanish-speaking underclass, are overblown.
In that regard, the census numbers are not new: There is mounting evidence that Hispanics are succeeding in American society at a pace similar to that of prior waves of European immigrants.
Source: Published originally on the New York Times The Upshot as More Hispanics declaring themselves whitehttp://www.nytimes.com/2014/05/22/upshot/more-hispanics-declaring-themselves-white.html?_r=0 by Nate Cohn, May 21, 2014.