The Debt Collective recently announced that it had canceled $10 million of student loans at Morehouse College, a historically Black university in Atlanta. After buying up the debts for $125,000, the organization then forgave that debt. Debt collection agencies are allowed to buy bundled debts for pennies on the dollar.
Black borrowers are disproportionately impacted by student debt, both in terms of need and the ability to pay off loans. President Joe Biden made student debt forgiveness a major campaign promise but the U.S. Supreme Court earlier this year blocked his plan after Republican lawmakers filed a lawsuit against it.
Dr. Richelle Brooks, an organizer with the Debt Collective, and the founder of ReThink It, an organization dedicated to providing resources to mitigate the harm of systemic racism, spoke with YES! Racial Justice Editor Sonali Kolhatkar on YES Presents: Rising Up With Sonali about the Morehouse College debt cancelation and how it can be replicated on a wider scale.