Tackling Student Loan Debt In Times Of Uncertainty

The typical student takes on over $30,000 in student loans to earn a bachelor’s degree, with the average borrower amassing $37,853 in student loan debt. While these loans make higher education accessible for millions of students and families, the burden is significant. It takes the near 42.8 million borrowers close to 20 years to pay off their student loans. Sonia Lewis, who calls herself the “student loan doctor,” is focused on ensuring that students from underrepresented backgrounds can repay their loans or have them forgiven through public service.

Given the upcoming presidential transition, student loan forgiveness — which has been a mainstay of the Biden-Harris Administration — may be up in the air. I thought it would be a good time to talk with Lewis about her thoughts on student loans and repayment.

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I started by asking Lewis what inspired her to make student loan repayment and forgiveness her professional mission. She shared, “I saw how many people, especially in underserved communities, were drowning in debt and didn’t know where to turn. I wanted to be the resource they needed to regain control of their finances and their futures.”

Given my interest in Historically Black Colleges and Universities (HBCUs), I was curious as to how the policy changes related to student loan forgivenss during the Biden-Harris Administration had an impact on HBCU students and graduates. Lewis mentioned, “Policy changes under the Biden administration have significantly impacted HBCU students and alumni. The administration has approved approximately $175 billion in student loan relief for over 4.8 million borrowers, including many students from HBCUs.” She believes that these measures have enhanced financial stability for students and graduates and have promoted “greater educational and economic opportunities.”

I also asked Lewis how HBCU students and alumni can position themselves financially to adapt to potential changes in student loan policies during the forthcoming Trump-Vance Administration. Lewis suggested that HBCU students and alumni begin by auditing their current student loan situation: “Know your balances, interest rates, and repayment terms. Consider consolidating loans or enrolling in income-driven repayment (IDR) plans if applicable, as these options can offer flexibility.” In addition, she recommended, that student loan borrowers, “Stay informed about legislative updates impacting federal student loans and consult trusted financial advisors.”

Lewis offers sound financial advice, urging students and alumni to “establish a financial cushion by building an emergency fund and budgeting to ensure they can handle unexpected changes in repayment terms.” She stressed the importance of diversifying personal income streams and prioritizing debt repayment to reduce overall financial stress. Given the potential policy shifts, Lewis believes that “The key is preparation and adaptability” to ensure that you remain financially secure regardless of changes in leadership.

HBCU students and graduates often face disproportionate challenges with student loans due to higher borrowing rates, limited family wealth and assets, and systemic economic inequities. According to a research brief by The Institute for College Access & Success, “Student loan borrowers who attended HBCUs owed 130 percent more than their original loan balance a decade after entering repayment, compared to borrowers from non-HBCUs, who owed 67 percent of their original loan balances on average.”

Many rely heavily on loans to finance education, leading to greater debt burdens upon graduation. To prepare for repayment success, Lewis said they should focus on “financial literacy, track loan details, and explore income-driven repayment plans.” Building emergency savings, budgeting, and seeking guidance from experts can also help with successful repayment and achieve financial stability despite these challenges.

Lewis recommends that HBCU alumni working in public service or nonprofit sectors explore the Public Service Loan Forgiveness (PSLF) program and determine if they meet eligibility requirements. And for those who are already benefiting from public service loan forgiveness, Lewis reminded participants to check their progress toward forgiveness to “avoid surprises.”

Overall, Lewis believes one of the best ways to empower borrowers, especially African American borrowers and HBCU students is to ensure they have stronger financial literacy. She shared, “Financial literacy equips borrowers with the knowledge to make informed decisions about loans, repayment options, and budgeting, reducing debt burdens and promoting long-term financial stability.”

She would like to see financial literacy in our education systems, and recommends that schools offer mandatory courses on personal finance, starting in high school and continuing through college. Lewis shared, “Early, consistent education ensures borrowers are equipped to navigate complex financial landscapes with confidence.”