Figure 3 Comparison of Generation X and Millennials' Distribution of Debt Sources future. hav employin ing a For g high the arter l ificial inte form ifetime er glli sal ro gup en ary ,ce thi that to cr s iscom eate essenti e a mo s w ally ith re l h a se iev ghlf erag er -fulfil ed eucatio abl ling e p fin n. ro ancial ph Hoecy wever, coac , as thi thos hins g e who solut differs ion take stu drthat amat w ica de ou lly nt ld hel alon loanp direct g s b rac ut the e wo and n rkers do Diversity, Equity, and Inclusion . . . and Student Loan Debt 2 to ethnicity not g the raap du propr lines ate are l , iate financ as well as ikely to ial h ge exnd pe elp for er rie and oth ncet l heir ow si er er f f tuation. B utur actoe rsi. In ncom ut de ee ed ven l s , o to pay ver ow- th tec dow e p h s n as olutions the t two ir stud de coul ca ent dd be us es, loan debt. more o eful:f O th ne e spart tudent icipa lo nt no an de ted bt When They Were Ages 25 –36, by Race/Ethnicity of the Family Head Mino increases Fu the rthe potentia ri r, th ties hav e Fee l m v e alue ed accr l They Ha iano u stud f ed an to ent an v pn eople w e B loan balanc ual een quest Tre ho l ion ac at es na k we ed were ire Un alt that al h withi fair s w o su ly ould n bsthe tantially high ask workers ir family as to er acros a id cus entify hio s e n the ac to he hir race mo lp pay it s /ethnicity t pres back sing among .fin anci the al — or Millen other Fu rthe n — r, othe ial fami stresrs studie lies (Fi ors. The ques s gu sug re ge 2).tionnaire s B t that eve lack M coul ille n nni ad mo the al ng fami n those inc lies sho lude l who inks wed the do to the get th lar be ge e degr nef st dits if ee fere site, an nce: d or o the The med ther highdi errectio iian ncosme, n tud s ge ent wit are l hi oan d n to B de la he ck bt lp an link held d 100% Student Loan Debt . . . and Diversity, Equity, and Inclusion While most Americans suggest that they have received fair treatment by financial services companies, the 2021 by B S workers o rown ,Black the comm sys to t Mil tem that is lhe eu nni nities, many hel alp fam they nee mea ilies ti nt to e was $ mes d. 34 nhanc thes ,000 i e ie s ndi n ocial mobility vidual 2019, comp s migh 7.6% ared with can have t t be the firs $6,4 he t ge 98 opp neration amo osite ng the e to ffec be B t. very lack G Twenty gai enerat n ye ful arly ion s e af mploy X ter famili stu ed de es . nt l Fo at the r oan 9.7% 11.8% 11.6% Retirement Confidence Survey showed that Black Americans of all ages were equally likely to 13.2% feel that they were 14.9% 17.0% de s them, ame ages bt ori pgi aying natio . down s 17.8% n, the me tuddi ent anloans White borro faster, w or even er has saving paid ba for retir ck 94 pement ercent, of might that take loan .a In back contr seat ast, to h 20 elp years ing af out terf stu riend de snt 90% treated unfairly by financial service companies, while older Hispanic Americans were more likely to feel unfairly treated 4.2% loan debt Po and li cy family and ori . Regula gination, ti o th n: e m The edirou an B nd lack tabl b eor poin rower stil ted out l th owe at rece s 95 pe nt rc prop ent os of ed that le l gioan slatio , cr n eat coul ing d exp decad ane d son -long permis debt sible 5.8% than younger Hispanic Americans. Hispanic Americans in the lower two income groups were more likely to disagree that 2.0% 17.1% 8.3% help By race ov erhang . SECURE /eth s tha nic tity, 2.0, for e limit studen borrow xam t loer pl an e s’, d abi woul eblity to t w d as co al d bif uil sy o cons d g e uidance quity th istently h irnough terms igher h of om for e eo the m w plo nership, Mil yer matc lenni to sa alhi fam ng contr ve f ilies tha or eibut mer n for t ions gencies he based G , an en on quali d eration to save for X fied 80% 4.5% 17.0% 3.0% 7.8% they were treated fairly than White Americans, whereas Black Americans in the higher two income groups were more It is estimated that more than 45 million people have student 3.6% retireme s Cultural familie tudens t ( d loan r nt. Fi iff ge O ur rne ences also ep e 3 aym conc ). Ho ents erni wever p . ng s la This w y a , t tat he role. ist ou sic h ld buil are o is tha In fof Black d cus t more th on g the rou Millenn IR ps, an h S As pialf rivat ian al fami oan f e all d lett lies’ stud Ind er r stu ian e unt lin de American g loan nt that a loan deb d 3.4% llow p te a a bt rt p ed ticipants stands out: res this f ent i or wer s one he B e m ld l e ack mploy by ore li Mil hoke le usehol er. nni ly to al ds w s family ay ith 4.8% likely to feel this way relative to White Americans. 1.6% 9 loans in the United States, collectively owing $1.7 trillion. Over the 42.8% zero or that they studen 70t n %loan d e h gati earve ne d ebst com pecifi t wc prise ort ad hv sd .i2.1% ce ab 4 2.8 perce out savin nt of g an the d ir soli ded fin bt, or mor ances e gro than f wingive times t up. In contra hat s of t, the His p pan roic porti paon that rticipants stude wern e t loan more past year, EBRI has engaged in a significant amount of research de likely The roun bt re to s presen dtable note ay thted for B at their d p tlack hat e arent Gmployers eneration s worked can very X f aalso milies at hard mak but also e the im p srov ame ages lived mo ements re i thr nfor 20 ough 0 the 1. Furth e present xercis ermo e and may s as simple re, the stu not hav as dereviewi nte loan a lot sav d ng thei ebt share ed r . of Minorities and LGBTQ Individuals Prefer Some Connection to Those Providing Financial Advice to identify the impact of student loan debt on the retirement and 60% Fu Black Mil tuition rther, s reimb lenni tudu eal rs nt l ement fami oan lies debt poli was cy can 2 . T .5 tak hey times e n its ote toll gre d tater tha on hat som the n m e em that entap l of loyer tuitio hea the lth White, of tho n rnon s ee imb carry -His urspa in eme g nic M itnt . Acc poli illenn ordin cies ial fami h g ave to o lies. not been ne study, revie 1 in wed in 14 10 overall financial wellness of Black and Hispanic workers. In a 20 s Fu Wh uch rthe yo ears Ho borro r, Bl . The ldack wer s S s tudent roundta and experie Hispan bl Loa nece agreed ic n sAm uicid Deericans bt that a l ide e atio pre xpan. fer ndin s For om g th those e conn ese pr s ection to ograms ingle wom coul thos en w d be e provi itha trem stud ding ent endo them f loa us opp n id nancia ebtort earn uni l advice: eithe t ing y for less employe than r working $50 es to ,000 recent roundtable, EBRI’s Diversity, Equity, and Inclusion (DEI) 50% annual be ablely to tak , that number e advantag goe es of up som to e 1 oin f th 6.ese d ollars. However, tuition reimbursement can also be a budget buster for a with an advisor who has had a similar upbringing on experiences, is affiliated with their employer in some way, has a 2.7% The roundtable turned to the topic of who holds student loan debt. They noted that women hold about two-thirds of Council addressed findings from the research of EBRI and others, s be imilar nefits te racial am. Takin /ethnic back g all gro of und as them, this into cons idera or is the tion, same President B gendeid r as th ent’s st em. As udent such, B loan for lack given aness d Hispa progr nic work am coul ers d wo eithuld er the $1.7 trillion in student loan debt, with Black women being more 82.1% than twice as likely as White men to owe more than including key takeaways and possible implications and solutions. 40% 78.0% have a N early coolin 1 in 7 g a e du ffect o lts betw n em een p the loyers ag ’ es int of erest 25 i an n td uition 64 have reim taken bursement some (if college cours employers es be b lieve i ut not com t renders plet tuition ed a degree, and benefit from greater diversity among individuals providing financial help in the workplace and beyond. Also, Black and 3 74.1% 73.4% $50,000 in undergraduate student loan debt. The group noted that this seems to be a function of how different 71.6% ly 70.4% 11 69.1% Black a reimburs du em ltsen art un e the neces mosst li ary k) ely to , or it cou have so ld hme coll ave an e eg neergiz education ing effect (i but n f oe d mployer egree. s be lieve it makes tuition reimbursement Hispanic workers express interest in one-on-one, personalized advice that builds on their comfort with having a families save for their daughters’ educations vs. their sons’ educations. Obviously, with a disproportionate amount of 30% mo connection re afforda to bthos le). e providing them advice. student debt accruing to women, this can lead to poor financial outcomes longer term. Further, women are more likely 47.0% Id eas for Creating an Inclusive Environment of Financial Help to enter fields that do not tend to pay as much. This is potentially compounded by the lost years of income they may 20% EBRI's “Retirement Confidence Survey and the LGBTQ Community” showed that in choosing or considering a financial Conclusion We thank the members of the DEI Council: Aon, Bank of America, Capital Group, Custodia Financial, Fidelity, Emplo experienc yer e s: be Tacklin cause of g th the e ir topic role as car of ways eg to addres ivers. s the issue of student loan debt among minority workers, the advisor, the criteria that LGBTQ Americans are more likely to say are important are working with an advisor who has FRTIB, Morgan Stanley, NEFE, TIAA, Vanguard, Voya, WEX Inc., and WTW. roundta 10% ble started with the role of the employer. They pointed out that numerous studies show that for Black and had a similar upbringing or life experiences as them, working with an advisor who is the same gender as them, and By delving into the nuances of student loan debt and diverse workers, the roundtable was able to demonstrate how In Hisfact pan,ic BAm lack er women icans, the are w more p orkplace ro f ne igu to res see much more ing student p loan rominen balanc tly wh es e grow n it com over tim es to e. a source o Research s f fin hows that ancial hel w p hile the working with an advisor who is an ally of the LGBTQ+ community. Roundtable participants pointed out that being given student loan debt can be a double-edged sword: Navigated well, student loan debt can provide diverse workers with a 0% com typical pare Wd hite with man White has count paid off erparts about . How 44 percent ever, wh of en stu Bladck ent an loa d His n deb pan t i12 c emp years loyees after are be of ginn fere ing d s coll tude egnt e, lthe oan typic debtal hel Black p, Figure 2 advice that’s from the point of view of a straight, White male can be perceived as applying to only straight, White, path to greate Genr i erncom ation Xe and Millweal ennialth; s navi Geng erati ated poor on X ly, Millit can exac ennials Gerba enerati te wealth on X Mi g llen ap nis a. T ls he roun Generati dton abl Xe fou Mi nd tha llennialst 4 EBRI Research female they w b ere orro less w l er h ikely as to setak en h e er b advantag alancee gro of iw t be byca an ad use th die tiy tend to onal 13 perc bele ient ve . that it doesn’t meet their specific needs. Comparison of Generation X and Millennials' Median Student Loan Balances married people. President Biden’W s hi pot te, n ential on-His ps an tuden ic t loan de Blac bt k/A re frilief p can Ame rorgr ican am is unlikely to be Hispan a panac ic ea. However, there Other is much beyond When They Were Ages 25 –36, by Race/Ethnicity of the Family Head this program that employers, providers, advisors, peers, and policymakers can do to level the playing field to help Millennials’ Student Loan Debt Exceeds Other Generations’ The roun Additionall dtable note y, one survey d that i foutnd is t import hat LGant t BTQ respon o considde ernts eq h uity ad ab when out it c $112,6 omes to b 07 in stud eing ab ent le loa to n deb adopt t, availa higher bl than e de t bthe Housing Credit Card Student Loan Other workers assume appropriate levels of student loan debt and pay it down effectively. Importantly, the roundtable also Insights From the DEI Roundtabl 5 e: s ge olutions neral popul . For ation. example, Not onl thosy d e woes ho t work in his cohort leav roles whe e coll re teg hey d e wo it n h ot mo hre ave acces debt than s to the a comput average er stu ord have fr ent, buee t it time is als to o In the Issue Brief “Comparing the Financial Wellbeing of Baby Boom, Generation X, and Millennial Families: How Do the Source: Employee Benefit Research Institute estimates of the 2001 and 2019 Survey of Consumer Finances. pointe $4d 0,0to 00 the importance of taking a focused approach that identifies and targets for help those who are most likely to mo perus re l eike the ly to benef eng ita site ge i n co job hoppi uld be atng as a disa th dvantag ey face e for discri us minat ing availab ion and le may bene the fits. re Em fore pl e oy arn ers l ess nee tha d to cons n their idno ern thi -LG s as well BTQ Generations Stack Up?,” EBRI found that one financial indicator that was universally higher for Millennial families Bid strugg enle Stu to r de epay nt L s otud an De ent lo bt Rel an deb ief t, such as individuals who assume student loan debt but do not obtain a college counterp as deliverab artsili . tAnd y of s mes o, LG sag BT es Q: workers If all mess not ag onl ingy about have avai more stud lable stud ent ent loanl oan debt debt, bu h t th eley may hav p is coming thro e less ug ab h e ility mail to pay , there are compared with Generation X families at the same ages was the incidence of student loan debt. In some cases, the degree. Generation X Millennials likely down this to bede co bhorts t. who will not benefit. Employers will do well to consider multiple ways that information can be The Millen roun $3n 5,0 ial fami 00 dtable lies were started b ny ear dilsy twice cussing as l why ikel concerns y to have a $34,000 h bou eld s t st tude udent nt debt loan de asbt the and Geweal nerath i tion X famili nequality a es.re relev This higher ant ev en in Minorities’ Student Loan Debt Has Significantly Increased disseminated, including text messages, one-on-one benefits advocates, or workplace champions. the likelifhoo ace o d f Pr of hav esident ing stu Bide dent n’s loan debt potential h stu eld true dent loan acros de sbt ea fch race orgiveness /ethni pack cityage. of the fam Roundtable ilies, w partici ith Blac pants k Mill cien ted nial res fe aarch milies In The the re i Is s a sue B lso arief ge neratio “Studenal co nt Loan D mponent ebt: W to ho Has the di It stribut and io Hn ow of stude Much?nt l ,” EBRI oan dfoun ebt.d Mor thaet than famili 3 es w millith ion min Americans ority hea ag dse saw s 60 having focusing on the l f ar ege desral t diff gov eren ernm ce ent relat loa ive to ns eli th gible eir G fen or eration forgive X ness count — w erpart ith tota s (Fig l outs ure tand 1). ing balances of $1.38 trillion as of 6 $30,000 s and Relatin ignif oic ldantly g erto ha th hi de gh mo latter er re than percenta , a ro $ u8 nd 6 ge tab b ill increases ion le partici in un ipan pai n the dt r stud ir elaye aver ent d ag t loans he e ss tud tor collectiv ent y oflo an an ely d athlete .e bt hel Furt w her, d ithin from a lar a 1 sge ports 992 to 2 maj org ority 0an 19 of ization than di America wd fa ho n wanted milies adults Decem ber 31, 2021. Forgiving balances of $10,000 per borrower would eliminate a total of $321 billion of federal $28,000 with ( to hel 84 pW erce p hhite, is f nt)ell no rep ow n-ort His teamm t pan hat stu ic at he ede sads w nt ith l — oans the 461 ir ar per fie n n ancial cent egatively for fa situatio i mili mn. pactin es with His e g m B thpl la e oy ck amo er rea /African unt liz theAm ey ar d the eric e value of an able heto ads a save havi nd f ng or r 33 a4 trust etirem percent ed ent s f ource o , w or ith f student loans, wiping out the entire balance for 11.8 million borrowers (31.1 percent) and canceling 30.5 percent of Figure 1 1 nearly s familie uch in s 3 format with out o “ot if on amon 4 her” borro hea wers g ds v thereport teammat s. 190 p ingercent es, they e are putti ven thou for famili gh th ng of es wf e ith max athl Wimizing t ete hite, hims non heir elf -His didn’t rpan etirem ic h hea ave ent sav ds. all t he ingk snowl . Ame ong dgethos he e n wh eede o are d. The loans delinquent or in default prior to the pandemic forbearance. While this is significant, it is clear that even in the $25,000 Comparison of Generation X and Millennials' Student Loan Incidence not sav employer ing for prov id retireme ed intensive nt at a fin ll, anci more al than coac one hing to th -quarter ( e athlete 26 pe so that rcent) point to t he could he ne knowled ed to geab pay ly talk off studen to his teamma t loan detes bt as . In event that the student loan debt relief moves forward, quite a bit of student loan debt will remain. For those individuals $22,000 7 the Yet f short, re or e as those mploy on. fam ers may w ilies W whose ant hen to cons head They obtai id W erere A re necruitin d a coll ges g eg trus 25 e deg – te36, d ree, th financi by Race/E e al as cha set mpions f sth accumulate nicit rom y of td heir work th we ere Fam hig forc h ily er t e Head han for th to help em e fa plomilies yees who continue to have student loan debt, assistance from the employer will still be necessary. 60% whose navigat head e stud hent ad not loan deb obtain t ed help a college . degree. As such, obtaining a student loan and getting a college degree can pay $20,000 Generation X Millennials off Much of over th thi e s fis d amily’s enti riven by re pelifet ople ime. An who are d fro near ret m a policy irement per an spedctiv who ar e, it ie borr s important to owing not re on cogniz their e o th $17,327 wn at t be wo hal -thir f, but o ds ofn st bud ehalf ent Also of concern was the potential for the Biden program — should it move for$17,000 ward — to provide license for higher loan debt of Round child ta re bl n ie sa pa held nd grandc rticipants by famili hildre note es with n. d Anothe the incom valu r e s es ur of leverag vey or net foun wing af ort d th hat s fi in al nity g th mo e stop ro t two up hsal - wi th f of irds of thin their th p e res ar orents gan pectiv ization with e cate stud an gorie d ent wit sde . T hin bt hus, th ine the EB com RI ir munity 50.3% educational institutions to raise their tuitions even more. This would potentially add to student loan debt over the long 50% $15,000 to familie conclud help with s ed (de , a univers bt m held ei essagial ng ther by s , coac tudent l thems hinoan g, and cr elves, forgive th eaness eir tings p pouse an env rogram, /par ironment o w tner, or hich has b the f auth ire c en discu enticity, c hildren) ss w ultur ed ere in al very som conte w e policy orri xt, a edn a d circles bout trust. , w th e os uld tude be nt of term . Further, the roundtable wondered to what extent future student loan borrowers might be incentivized to take $12,707 44.9% greater loan debt bene repa fit to thos yment pe ause withend higher ing, iwith ncom hes. alf A sayin targ g ete that d f wh org en it d iveness oes, program they wil — l like or lone y finthat d it d pinp ifficu oints lt to in me divid et basi ualsc most large loans in anticipation that they would be forgiven, when there is no guarantee that will be the case. 8 family nee in Advisor need of s: h ds. So elme of p — co the uld foc aforus the hel ementioned p o ln e those mos ssons for emp t in n loy ee ers d. Furt can a her lsomo trans re, llate owerin into g how the cos adviso t up rsf ront may might be tte be r mo work re $10,000 38.6% 40% eff with ectiv their e in div hel ers pie ng in clients divi.du Do ales the s from ad fam visili or e sun wde ithrs low tand er r the esosurces ituatio to n a be nd ab circums le to affor tances d college, of the indi inste vidual wit ad of havi h wh ng tom hese In sum, the roundtable believed that student loan debt remains a threat to diverse workers’ financial stability that $6,498 Student they indivi ’re du talkin als Loa fac gn Debt e ? Can signifi they co an cant d d Snvey this to eb ocial t whe Mobi n th th li ey ty e g in radi du viate dual (or in don’ order t gto ra creat duatee ), w a tr hich usting re may s lations care them hip? Or ar away f e th rom ey spe a coa llege king a merits ongoing employer focus. $4,332 lang educatio uagen (fi alto gur ge atively or ther. literally) that the individual does not understand, and therefore does not resonate? $5,000 The group noted that the narrative around student loans is that they are “good debt” that will ultimately fund 30% Student Loan Debt and the Wealth Gap 27.1% themselves. Student loan debt is commonly viewed as a path to bettering oneself, achieving upward mobility, and 25.3% Student However, t Lhe group oan Debt genera and LllGBTQ y agre ed Wor that o kers ne -on-one financial counseling is a valuable way to help workers navigate 24.1% 23.4% A key reason that student loan debt remains a relevant concern for diverse workers is that it has an enormous impact $0 the daunting “maze of benefits” — including student loan debt help — they often face. According to the 20 Whi2 te, 2 nW onork -Hispl pan ace ic Wellness B Su lackrvey /African , LG Ame BrTQ icanworkers were mor Hispane iclikely than non-LGBTQ work Other ers to report on the wealth gap between minority and other workers. For example, one study featured interviews of 45 low-income 18.9% 20% 2 https://www.tandfonline.com/doi/full/10.1080/13676261.2021.2010692 that monthly bills and student loan repayments were the financial issues causing the most stress. However, LGBTQ Source: Employee Benefit Research Institute estimates of the 2001 and 2019 Survey of Consumer Finances. students at a four-year commuter university in Detroit. The study highlighted the difference between students who Providers: The roundtable agreed that there are several key ways that providers could help employers and their workers were less likely than non-LGBTQ workers to report that they were offered a financial wellness program. LGBTQ end 3 ed up dropping out of college and those who did not. Those who dropped out were more commonly low-income Bamona, Christelle, Sunny Glottmann, and Juan Ramon Riojas, “Resilient But Deeper in Student Debt: Women of Color employees with student loan debt. Again, referring back to the “maze of benefits,” it was suggested that providers workers were also less likely than non-LGBTQ workers to report that financial wellness programs were extremely useful: minority students who demonstrated a high level of debt aversion. In contrast, the students who stayed in college and Faced Greater Hardships Through COVID-19.” Center for Responsible Lending, June 2022. could do more to harness technology in order to better direct workers to benefits they most need. This could include 10% 17 percent of LGBTQ workers reported that they were extremely useful compared with 27 percent among non-LGBTQ persisted through their post-secondary career more commonly expressed a belief that that they were investing in their 4 https://www.demos.org/sites/default/files/2019-06/Debt%20to%20Society.pdf workers. 5 9 https:// https://studen www.btlo roo an kings.edu/e hero.com/ssay featured/surv /student-e dy ebt -lgbtq -cancellati -student on--borro should wers -co- nsider regret--wealth loans/- not-income/ 0% Minorities Less Likely to Participate in Student Loan Debt Relief White, non-Hispanic Black/African American Hispanic Other 10 6 https:// https:// ww ww w w .in .ssider. tudenco tlom/am anplan ericans ner.co-m/mental over-60-pay -hea ing lth -stude -aware ntnes -loan s-s sur -20 vey 19/- 5 In the 2021 Workplace Wellness Survey, EBRI found that lower- and higher-income Black and Hispanic workers were Source: Employee Benefit Researc h Institute estimates of the 2001 and 2019 Survey of Consumer Finances. 11 7 https:// https:// tiaa.new ticas.org/w -media p-co -releas ntent/e.c uploads/2021/07/quic om/mit-agelab/page k- s/fullrel facts-on eas -co e.html llege- completion.pdf 1 less likely than lower- and higher-income White workers to participate in student loan debt relief/repayment, with no https://libertystreeteconomics.newyorkfed.org/2022/04/who-are-the-federal-student-loan-borrowers-and-who-benefits-from- 8 differences among middle-income groups. Tuition reimbursement displays the same pattern. forgi Parents veness/ Stude nt Loan Debt Survey. ParentsTogether Action, August 2022.