Plan for student debt relief could benefit tens of millions in all 50 states

According to a statement from the U.S. Department of Education, “Today, the White House released state-by-state data on how the Biden Administration’s plan for student debt relief will benefit borrowers in all 50 states, Washington, D.C., and Puerto Rico. Last month, President Biden announced his Administration’s plan to give working and middle-class Americans more breathing room by providing up to $20,000 in debt relief to Pell Grant recipients and up to $10,000 to other borrowers. The Biden Administration expects more than 40 million borrowers are eligible for its student debt relief plan, and nearly 20 million borrowers could see their entire remaining balance discharged.

“The Biden Administration’s student debt relief plan will help borrowers and families recover from the pandemic and prepare to resume student loan payments in January 2023. Nearly 90 percent of relief dollars will go to those earning less than $75,000 per year – and no relief will go to any individual or household in the top 5 percent of incomes in the United States. By targeting relief to borrowers with the highest economic need, the Administration’s actions are also likely to help narrow the racial wealth gap. Nearly 71 percent of Black undergraduate borrowers are Pell Grant recipients, and 65 percent of Latino undergraduate borrowers are Pell Grant recipients.”