The Community Service Society of New York
07/25/2024 | Press release | Distributed by Public on 07/25/2024 10:40
Press Release: New CSS Report finds New Yorkers with Student Debt Face Unrelenting Hardships Despite the Promise of Upward Mobility
July 25th, 2024
Press Release
New CSS Report finds New Yorkers with Student Debt Face Unrelenting Hardships Despite the Promise of Upward Mobility
A new report by the Community Service Society of New York (CSS), based on the latest findings of its annual Unheard Third Survey, suggests that that student loan debt may be exacerbating hardships for New York City residents, including those with a college degree, challenging the notion that higher education guarantees upward mobility.
According to the report, entitled "The True Cost of a College Degree: New Yorkers with Student Debt Face Unrelenting Hardships Despite the Promise of Upward Mobility," one in four New York City residents are grappling with student loan debt, highlighting the pervasive nature of this financial burden.
Key Findings:
- Racial Disparities: The report reveals significant racial disparities in student loan debt. Black (30 percent), Latina/o/x (29 percent), and Asian (27 percent ) New Yorkers are more likely to have student loan debt compared to their White counterparts (17 percent).
- Income Inequality: The proportion of New Yorkers in near-poverty, with incomes between 100 percent and 200 percent of the Federal Poverty Line (FPL), carrying student loan debt rose from 26 percent in 2021 to 30 percent in 2023, the only income category to see an increase.
- Gender Disparities: Women (60 percent) are more likely to have student loan debt compared to men (40 percent), with repayment challenges exacerbated by the gender pay gap.
Economic Hardships:
- Economic Hardships: Among low-income households with student loan debt, 60 percent reported experiencing three or more economic hardships. Even among moderate-to-high-income households, over half reported the same.
- Housing Affordability: Forty-five percent of New Yorkers with student loans face significant housing affordability challenges, compared to 18 percent without student loan debt.
- Food Insecurity: Forty percent of households with student loan debt experience food hardship, with notable disparities along racial, ethnic, and gender lines, particularly impacting low-income households led by Latina/x women.
- Health Challenges: Over half of low-income households burdened by student loans report health hardships, compared to 30 percent of those without.
- Economic Strain: Nearly three-quarters of low-income households with student loan debt face one or more hardships, including transportation expenses, childcare, and reduced wages.
The Unheard Third is the only poll of its kind that surveys low-income opinion, with the intent of ensuring the concerns of low-income residents are elevated in the public policy debate on policies and programs aimed at helping them get ahead economically. The 2023 Unheard Third Survey offers valuable insights into the severe challenges faced by New Yorkers with student loan debt, particularly in critical areas like housing, food, health, and overall economic security.
Proposed Interventions:
CSS advocates for several key interventions to alleviate the burden of student loan debt on New Yorkers. At the state level, we support passing the New Deal for CUNY to eliminate in-state tuition costs, creating inclusive pathways from high school to public universities, incentivizing employers to help with student loan repayment, developing housing programs for those with student loan debt, and ensuring borrowers continue to have access to free and unbiased consumer assistance. At the federal level, we call for extending the tax exemption for federal student loan forgiveness beyond 2025 and aligning student loan bankruptcy rules with those for consumer debt. These measures aim to promote economic stability, social mobility, and equitable access to opportunities across racial and gender spectrums.
"This report sheds light on the stark reality that student loan debt is not just a financial burden but a significant barrier to economic security and well-being for many New Yorkers," said David R. Jones, President and CEO of the Community Service Society of New York. "Our findings call for urgent attention and action to address these disparities and support those struggling under the weight of student loans."
"The findings of this report suggest that acquiring higher education is not a certain steppingstone to economic security," said Debipriya Chatterjee, Senior Economist and co-author of the report. "We find that the burden of student loan debt, while adding to hardships, also prevent households from achieving financial security, denying them opportunities to build wealth and savings."
"The burden of student loan debt exacerbates all aspects of life-housing, childcare, and health care, as we see daily through our consumer assistance program," said Carolina Rodriguez, Director of EDCAP (Education Debt Consumer Assistance Program). "State and federal governments must act to mitigate this impact and pursue common-sense solutions."
The Community Service Society of New York (CSS) has worked with and for New Yorkers since 1843 to promote economic opportunity and champion an equitable city and state. We power change through a strategic combination of research, services, and advocacy to make New York more livable for people facing economic insecurity. By expanding access to health care, affordable housing, employment opportunities, debt assistance, and more, we make a tangible difference in the lives of millions. Join us at www.cssny.org.
In 2019, CSS created the Education Debt Consumer Assistance Program (EDCAP). EDCAP is a first-in-the-nation program model dedicated to helping student loan borrowers manage and, when possible, eliminate their student loan debt. To learn more about what we do, visit edcapny.org. Borrowers who need one-on-one help can contact us: Helpline (888-614-5004; [email protected]).