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Everyday activists buy up $10 million in student debt then wipe it away for 3,000 people

They bought the debt for just $125,000, proving change can happen without a billionaire’s help.

Photo by Element5 Digital on Unsplash

3,000 students at HBCU Morehouse College had their student debt erased.

Credit and debt are part of a system that is frequently stacked against borrowers, and it can be harshest on those most vulnerable to its traps. In a powerful move that leverages the system against itself, a group of debt activists recently canceled nearly $10 million in student loan debt for $125,000. The effort benefited thousands of former students from Morehouse College, a historically Black institution in Atlanta.

The activists, part of the Debt Collective and its sister organization, the Rolling Jubilee Fund, purchased the debt from the college for about one penny on the dollar. Buying debt involves purchasing unpaid loans at a steep discount because the lender deems them unlikely to be repaid. They then erased the balances of 2,777 accounts, wiping the slate clean for students whose loans were in collections since Fall 2022 or earlier.

Morehouse College, whose alumni include figures like Martin Luther King Jr., fully supported the effort. The cancellation means that these borrowers can now access their transcripts and diplomas—something many of them were previously unable to do due to the financial burden.

This remarkable debt cancellation demonstrates a path forward for broader student loan relief, especially for graduates of historically Black colleges and universities (HBCUs), who are disproportionately affected by student debt.

"This nearly $10M of student debt cancellation will put thousands of Black folks in a better position to be able to save for retirement, purchase a home or start a small business."

— Braxton Brewington, Debt Collective spokesperson

A bold step in the fight for debt relief

The Debt Collective has advocated for student debt cancellation for over a decade. Their efforts began with buying up debt and freeing people from collections, including millions of dollars in student and carceral debts. Last year, the group bought and canceled $1.7 million in debt for students at Bennett College, another HBCU.

Their latest action at Morehouse comes at a critical point in the national conversation about student loans. President Biden's broader student debt cancellation plan was struck down by the Supreme Court earlier this year, leaving millions of borrowers in financial limbo.


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This cancellation sends a clear message that large-scale relief is possible.

"President Biden has yet to make good on his campaign promise to eliminate all student debt held by HBCU graduates. We’re doing our part, and it’s time Biden does his."

— Braxton Brewington

The real impact of student debt

Student debt is a significant barrier to financial stability for millions of Americans. This burden is especially heavy for Black borrowers, who are more likely to take on loans and face more significant financial challenges after graduation.

Morehouse President David A. Thomas acknowledged that debt discourages many students from attending college and pursuing their dreams. "Debt has proven itself to be one of the strongest deterrents in a prospective student's decision to attend college and inhibitors in alumni’s socioeconomic success post-graduation," he said.


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With Morehouse's support, the Debt Collective and Rolling Jubilee Fund are working to level the playing field for these students and their future careers. The college also aims to become a need-blind institution by 2030, further reducing financial barriers to education.

"Partners like the Debt Collective and Rolling Jubilee are making the investment to help level the financial playing field for our students and alumni."

— David A. Thomas, President of Morehouse College

A call for national action

The Debt Collective’s success raises an important question: If private organizations can buy and cancel debt, why can’t the federal government do the same? The group argues that its work proves there are real solutions to the student loan crisis. It’s calling on President Biden to follow through on his promise to cancel student debt for HBCU graduates and the broader American student population.


Debt Activists Bought $10M in Student Debt for $125,000 — and Canceled It All
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They’ve even launched a tool to help borrowers petition the Department of Education for relief under the Higher Education Act. Over 30,000 borrowers have already used this tool in just two months to request cancellation.

As the movement for debt relief grows, activists are urging people to speak out, get involved, and push for large-scale change. The more we demand action, the closer we come to a future where education doesn’t trap people in financial hardship but instead opens the door to opportunity.

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Policy

Free college is becoming a reality across America as 30th state is set to pass funding bill

Photo by Leon Wu on Unsplash

Graduation is easier to celebrate when you're debt-free.

Taking on college-related debt is something that most Americans now expect when graduating high school, especially if their parents are middle class or working poor. There are only so many scholarships to go around and so much you can earn from work study. In fact, the average millennial has just under $40,000 in student loan debt and Americans owe around $1.7 trillion in student loans. Taking on large amounts of debt fresh out of high school has become the norm, but that may be changing soon.

Some states are already offering two free years of college for graduating high school students, and now the 30th state is ready to sign on to do the same. Some states are taking it further than two years of free college and extending it to four years with the option to use the program for trade and technical schools as well. In New Mexico, the Opportunity Scholarship provides free college to its residents and expands that even further to include adult learners, returning students and immigrants regardless of immigration status. That last provision is unheard of, because, contrary to popular belief, undocumented immigrants are not typically able to participate in any sort of government funding or programs due to their lack of social security number and other documentation needed for participation.

The long-term effects of free college could be massive for the average American. It would open up the door for other opportunities that may have otherwise been hindered by holding so much college debt. Homeownership would be easier to come by for graduates due to an inherently lower debt-to-income ratio. It could also allow college graduates to save more money for retirement, a down payment on a house or to open their own business because they wouldn’t have to spend a large portion of their earnings on student loan payments. This could help bridge some of the wealth gap between higher earners and people that went into a lower paying profession such as teaching or social work.

Thirty states signing on to this type of initiative would bring us much closer to having universal college. And this would help give a fighting chance to those who may feel like they started life on the lowest rung. New Mexico’s Higher Education Department Secretary Stephanie Rodriguez told CNBC, “We want to be the national example of how you create a higher education ecosystem system that’s inclusive and accessible, so nobody is turned away from the opportunity to go to college.”

Maine would be state number 30 to allow for free college if the bill passes. Governor Janet Mills has proposed a plan that would make two years of community college free. When speaking to CNBC, Morley Winograd, president and CEO of the Campaign for Free College Tuition, said "If we get to 50, it's mission accomplished." Most are “last dollar” scholarships, which essentially means that any federal aid and private scholarships would be applied first, and the state-funded scholarships would cover the remaining balance.

If all 50 states signed bills similar to the ones in the other 29 states, it would make free college a reality and many families struggling with how to afford to send their children to college would rejoice.

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There are frustrating reasons LGBTQ students are more in debt than their peers.

From legalizing marriage equality to advocating for society to better understand the fluidity of gender and sexuality, activists have made incredible strides for queer and trans rights and success in the U.S.

But there's a group of LGBTQ individuals that's struggling, and it's clear that changes need to be made.

LGBTQ college graduates have, on average, $16,000 more in student loan debt than the general population, according to Student Loan Hero.

Through a survey, they found that 60% of LGBTQ students regret taking out student loans, and more than a quarter of respondents feel that their debt is not manageable. Queer students face an uphill battle against student loan debt, falling even further in the debt hole than their peers.

So, why is this happening?

Miranda Marquit, the report's lead author, says there's a chance that a lack of strong familial support may be behind it.

"Only 39% [of those surveyed] feel completely accepted by their families," Marquit writes in an email to Upworthy. "Some of these borrowers might not receive the same level of support that other students receive, including the ability to live at home (33% report being kicked out) or direct financial support, leaving [them] with little option but to borrow more."

Photo by Scott Eisen/Getty Images.

In addition to lacking family support and housing, Marquit found that many borrowers often feel the need to "prove themselves" at more prestigious — and often more expensive — schools.

"Anecdotal evidence from people we've talked to indicates that there is some added pressure to show that they are super-successful and can 'make it' at more prestigious schools, which can also lead to higher debt," Marquit writes.

Photo by Andrew Caballero-Reynolds/AFP/Getty Images.

LGBTQ students also face discrimination when applying for more affordable loans and jobs, leading to long-term debt challenges.

Queer financial expert John Schneider corroborates Marquit's findings, adding via email that "many respondents to the survey said they've been discriminated against when applying for loans because they're LGBTQ. Consequently, these students may have assumed loans with less ideal, less competitive terms."

Discrimination against marginalized groups is nothing new in in this country.

Landlords frequently refused to give black Americans home loans before the Fair Housing Act in 1968, limiting black mobility and financial well-being; banks have discriminated against black and Latinx homebuyers for decades; and Asian business owners have reported discrimination in regards to health inspections for years.

The reality is that discrimination has had a persistent, pervasive impact on marginalized groups. And its effects go beyond student debt.

LGBTQ borrowers are 53% more likely than the general population to make under $50,000 per year, and less than half reported having a retirement savings account, according to the report. With limited financial stability, not only are LGBTQ graduates in debt, they're struggling just to make a dent in it.

A lot of this, according to Schneider, has to do with how we treat LGBTQ people in the first place. "We need to start truly valuing LGBTQ people and people of all diversity and backgrounds," Schneider writes. "Kicking your son or daughter out of your home or making them run away for their safety makes you an unfit parent, and society should hold you accountable. Not treating someone equal because they're LGBTQ, black, female, etc., makes you unfit for your job, and your company should let you go."

Photo by Mark Ralston/AFP/Getty Images.

While the statistics are frustrating, Marquit and Schneider believe that there's room for progress.

Marquit points out that schools could more effectively focus on better student loan education efforts to inform LGBTQ and non-LGBTQ students alike of debt realities.

Schneider says to make sure that Pride isn't just reflected on a banner but also in hiring and financial practices.

"Depending on your LGBTQ status, we can still be denied housing, employment, and services in 28-30 states in this country," Schneider writes. "So, while we appreciate the Fortune 500 companies attending and sponsoring Pride this month and putting rainbows in the logos for June, how about they push for the equality of their employees, past, present, and future, in those 28–30 states for the next 11 months?"

Our LGBTQ students deserve more, and our schools, financial institutions, and the general public can help ensure they have the financial health they deserve.

Most Shared

9 things all Americans can agree on in 2017.

Before 2017 follows too closely in the footsteps of 2016 as yet another year of divisiveness, filled with Twitter wars and men on TV yelling about "hateful this" and "PC culture that," let's take stock of some things we can all agree on.

An accurate visualization of America right now. Photo via iStock.

From the special-est snowflake liberals to the don't tread on me-est conservatives, these are a bunch of plain and simple agreements that most, if not all, Americans can come to. We're probably not going to hug and sing "Kumbaya" after this, but maybe we can tear down a little bit of that wall that's dividing us. (Then part of it can be a fence!) (See, we're already laughing together.)

Things like...

1. Freedom is good.

That's right: freedom. You love it, I love it. People have fought and died for it. Alexander Hamilton and Beyoncé have both written hip-hop songs about it.

Some people who love freedom.  Photo by Justin Setterfield/Getty Images.

Freedom is the reason you can leave a nasty comment on this article (I can't wait, by the way) and it's the reason I walk past two mosques and a Catholic school every time I go to my local Jewish deli here in New York City (true story).

Freedom makes this country an eclectic and exciting place to live, and none of us want it to go anywhere.

2. "Batman v Superman" sucked, but the director's cut made it suck less.

Yeah, lets talk about that. "Batman v Superman: Dawn of Justice" was a hot mess. The tone, the pacing, the story, it was all completely off. Lex Luther's plan made no sense, and he was acting all weird the whole time. Just terrible.

They all know it, too. Photo by Bryan Bedder/Getty Images for Bai Superteas.

Thing is, Zack Snyder's nearly three-hour director's cut was way better. Not "great," not even "good" really, but thoroughly watchable. It was, at the very least, an original take on the characters instead of a cookie-cutter action movie with no personality, right?

Boom, look at that. You. Me. Same page.

3. Going to the doctor shouldn't cost like a crap ton of money.

Hang on! No, this isn't me using a young, hip platform to shoehorn in an advertisement for the Affordable Care Act. (Who do you think I am, President Obama? Zing!) (See? We can do this.)

Photo by Pete Marovich-Pool/Getty Images.

I'm just saying: No one should have to go to the doctor and be horrified at the bill. Did you know that nearly half of American households are one emergency away from entering poverty? Imagine if you had to worry about your health while simultaneously worrying about being able to put food on the table. That's a position no one should have to be in.

Whatever becomes of health care in the future, let's agree to agree: No one wants to (or should) go into massive debt because of a health crisis.

4. Billy Joel.

Photo by Brad Barket/Getty Images.

I mean, right? Come on. Piano Man? He's great.

5. We need more jobs.

Jobs are good! Unemployment is bad. More jobs means a stronger economy, more opportunity, and more money for you and yours. Who doesn't want that?

Photo by Matt Cardy/Getty Images.

I'll go you one further! We need more American jobs. We need jobs to be created right here in the homeland, making American stuff and building American industries that we can pass down to future generations.

The fact that we've steadily added jobs over the last eight years is great, but it's not enough. Now, we may disagree on what those new jobs should be and how best to create them, but at our core we're all chanting the same mantra: Mo' jobs, fewer problems.

6. This is a weird picture.

Photo by Philippe Huguen/AFP/Getty Images.

What are these people doing? Why does that one guy have an umbrella? Did they survive a pink kayak disaster or is this some kind of ritual sea-bath in Northern France? The world may never know, but you and I and the rest of America can rest assured that we agree — there are no two ways about it — this is a bizarre picture.

7. People should be able to afford their educations, regardless of income.

More people being able to pursue their education beyond high school is pretty much always a good idea. It helps us foster innovation and create those jobs and opportunities we were just agreeing on a few minutes ago.

Photo by Joshua Lott/Getty Images.

The massive student debt crisis is hurting all of us. Millions of young people are spending the best years of their lives buried under mountains of loan debt while trying and failing to get one of those jobs that there aren't enough of. Pursuing education should give people more opportunities, not hold them back, and, in turn, hold the whole country back.

That's just not cool.

8.  Brendan Fraser is the only actor who should star in "The Mummy."

Can't faze the Frase! Alberto E. Rodriguez/Getty Images.

We're all thinking it. What's Tom Cruise doing in that new "Mummy" movie? Does the world need more Tom Cruise? Does Tom Cruise really need another franchise? Are movie-goers really that thirsty for more Tom-Cruise-runs-away-from-things summer blockbusters?

Get Fraser back in there! This is his fight.

And finally...

9. Too many toddlers are shooting people.

Yep, this is a thing that is happening.

In 2015, there were 58 shootings committed by toddlers. Which is too many by about 58. There were over 50 in 2016 as well. Here's a chart from the Washington Post with a terrifying title:

So yeah, we can probably agree that we should do something to keep guns out of toddlers' hands. I know this is a divisive issue. I don't expect us all to suddenly agree on the need for more gun control laws (although most people agree on that too) because we all saw what happened after Sandy Hook and after the Pulse shooting. (You know — nothing.) I'm not talking about taking anyone's guns away, either. I'm talking about agreeing that we should all practice enough personal gun safety to protect ourselves from toddlers with guns.

Many of the stories in that Washington Post report involve gun owners who weren't practicing proper gun safety protocol. If we can't agree on more gun control laws and regulations, I'm pretty sure we can all come together and agree that anyone who has a gun should be keeping it far away from where any kid could reach it.

Making 2017 a year with substantially less toddler-shootings shouldn't be too controversial, right?

Honestly, the list doesn't end there. It's on all of us to keep it going.

There's a lot more that we can agree on. Pie, Nutella, campfires, funny hats. The list of things that unite us has always been longer than the list of things that divide us. That's good to keep in mind.

So yes, we're probably going to keep yelling at each other in 2017. We're going to openly disagree, debate, stumble, and evolve, and we should be truly thankful to live in a place where we have the freedom to do so.

In a world of Twitter, talking heads, and fake news, it's too easy for us to lose our common ground and lose sight of our shared humanity. We forget that we all love this beautiful, messy country of ours and want it to be better, and that we want to make it better through hard work and good ideas*.

*If you consider "good ideas" ones that strip away the rights of already marginalized groups, please see above: "Freedom is good."

OK now. Back to it.

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