Black Americans have a lot of debt, especially when it comes to being burdened down by a big portion of the $1.7 trillion of student debt across the nation –causing issues with homeownership, Business Insider reported.
Department of Housing and Urban Development (HUD) Secretary Marcia Fudge told Axios in a Sunday interview that student debt is causing problems for Black people when it comes to homeownership, according to the article. Last Friday, the Federal Housing Administration (FHA) announced in a press release it is giving its student loan monthly payment calculations a facelift to “remove barriers and provide more access to affordable single family FHA-insured mortgage financing for creditworthy individuals with student loan debt, which has a disproportionate impact on people of color,” according to the article.
Fudge said the “disproportionately” low rate of Black homeownership caused HUD to take a look at student loan calculation policies when it comes to homeowner assistance, which will boost homeownership access for communities of color.
“Who has student debt? Poor people, Black people, brown people,” Fudge told Axios. “We’re the people who carry most debt. And so the system’s already skewed toward us not being creditworthy.”
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