In 2017, as a counselor for a nonprofit organization, I arranged loans for first-time homebuyers. This role afforded me a profound look into the financial lives of countless individuals, examining paycheck stubs, bank statements, and assets. Engaging in deep, often revealing conversations about their financial realities. What became starkly apparent was that America operates in two distinct financial realities.
In Miami, where my journey began, the majority of people of color were employed in the hospitality and service industries. In stark contrast, non-melanated borrowers often held jobs I had never even heard of, yet they earned substantial incomes. This disparity extended to asset accumulation as well; some borrowers had significant savings and assets, while others struggled with minimal resources, burdened by debt and negative credit, often due to parental misuse of their identity during childhood.
Throughout this experience, I noticed a troubling pattern among educated people of color. We've been told that education is the key to advancing in society. However, many of us are first-generation college students, and far too often, we are the first in our families to graduate. We lack the family assets—home equity, cash reserves, or private lending options—that our non-melanated counterparts often have at their disposal.
Consequently, the burden of student loan debt is astronomical. I recall a young woman with over $300,000 in student loan debt, despite holding a bachelor's degree and two master's degrees. Her credit was impeccable, yet she was overeducated and under-compensated, making it impossible for her to qualify for a mortgage due to her debt-to-income ratio.
This situation underscores a critical issue: education, particularly for people of color, does not always translate into higher earnings. The wealth gap persists because certain groups can accumulate assets and restore equity, while others, regardless of their income, remain trapped in a hyper-consumption cycle.
As an educator, I witness, firsthand, how many young people view education as their pathway to better opportunities. However, the financial burden of traditional education models often outweighs the benefits. High incomes alone don’t guarantee homeownership or wealth accumulation if student loan debt is a significant barrier.
To address this, we developed a subscription model for access to bachelor's and master's degrees. This model aims to provide affordable, debt-free education, enabling students to build equity and challenge the wealth gap. Here’s how it works:
By adopting this innovative approach, we aim to bridge the educational and economic gaps, providing a viable pathway for individuals to achieve financial stability and homeownership without the crippling burden of student loan debt. This subscription model not only democratizes access to higher education and empowers a generation to build wealth and equity in ways previously unattainable.
Let us strive to create a future where education is not a financial burden but a beacon of opportunity, lighting the way to a more equitable and prosperous society for all.