More than 40 million Americans are expected to qualify for federal student loan forgiveness from the Biden administration, with as many as 20 million likely to have their remaining balances waived.
New figures from the White House show that no state will see less than 45,000 residents qualify for up to $10,000 in debt relief. For some states, the estimated number of eligible residents is in the millions.
Last month, President Biden announced his plan forgive thousands of dollars in federal student loan debt for borrower qualification: people with federal student loans who have less than $125,000 (or $250,000 for a couple) in 2020 or 2021 can get relief of up to $10,000, and Pell Grant recipients are eligible for up to $20,000. More details on who qualifies and how to determine how much you will receive found here.
According to the White House, 90% of these student loan loans will go to borrowers who earn less than $75,000 a year. The number of borrowers impacted in each state, however, will vary – drastically, in some cases.
The latest data from the White House shows that countries with larger populations will see the most number of borrowers impacted by the relief: California, Florida, New York, and Texas each have more than 2 million borrowers expected to qualify for up to $10,000 in debt relief. Georgia, Illinois, Michigan, North Carolina, New Jersey, Ohio, and Pennsylvania are each estimated to have more than 1 million borrowers in that category.
In California, more than 3.5 million borrowers are expected to receive up to $10,000 in student loan cancellation. Texas had the second highest number at 3.2 million.
At the opposite end of the scale, of course, the state with a small population – in Wyoming, for example, 49,600 borrowers will receive up to $10,000. For nearby North Dakota, that’s about 82,000 borrowers, and in Alaska, that’s 60,500.
When it comes to borrowers eligible for up to $20,000 in relief (who received a Pell Grant), California and Texas both have more than 2.3 million estimated to qualify. Four other states — Florida, Georgia, New York, and Ohio — each have more than 1 million borrowers meeting the same criteria.
Wyoming again has the fewest borrowers in this category at 31,400, followed by Vermont at 37,100 and North Dakota at 49,600.
Below is a state-by-state breakdown of how many borrowers in each state are expected to receive student loan forgiveness, according to the White House:
|Country||Estimated Number of Eligible Borrowers (rounded to the nearest hundred)||Estimated Amount worthy Pell Borrowers (rounded to the nearest hundred)|
In many of the broadest states — California, Georgia, and Florida, in particular — it is student loan debt is held by the average citizen higher, according to the latest data from the Department of Education. The opposite is true for states with more borrowers expected to benefit — North Dakota and Wyoming have some of the lowest average debt in the country.
This is not exactly the case in Texas. Although millions of borrowers in the Lone Star State are expected to benefit from Biden’s student debt relief, Texans have one of the lowest average debt loads in the country at about $33,000, the same level as North Dakota and Wyoming.
While 8 million borrowers are expected to qualify for automatic federal student loan forgiveness, the vast majority of eligible borrowers will have to wait until early October to apply for debt relief, according to the Department of Education. this what can you do while you wait for more details can be announced.
Exact details about how the federal debt forgiveness will be administered have not been released. Some borrowers can too receive automatic refunds for payments they have been making loans since March 2020.