The real moral hazard is ignoring the student debt cataclysm and its effect on the economy

Now, the data shows there is an aftershock in the form of the looming tsunami of student debt defaults that will hit communities of color the hardest, according to data compiled by the National Center for Education Statistics and Demos, a progressive think tank.

“Not only are students of color more likely to borrow more for a degree, and borrow in higher amounts for the same degree, but they’re more likely to struggle to repay student loans than white students,”  Mark Huelsman, a senior policy analyst for Demos told Student Loan Hero. “Students of color are also overrepresented at for-profit colleges and universities which account for a very large proportion of student loan defaults.”

“Among black students who started school in 2003, one in two defaulted on student loans within the following 12 years,” reported Student Loan Hero.