More than 40 million borrowers nationwide could benefit from President Joe Biden’s student debt relief plan, and nearly 20 million might see their entire remaining balance discharged, according to estimates from state-by-state data released Tuesday.
An estimated 165,900 borrowers from D.C. are eligible for student debt relief under Biden’s loan forgiveness plan, including 60,300 Pell Grant recipients.
Those figures swell in comparison in Virginia and Maryland.
In Virginia, 965,100 borrowers are eligible for relief, including 566,500 Pell Grant recipients. In Maryland, 747,100 enjoy eligibility, including 419,400 Pell Grant recipients.
Last month, Biden announced his plan to forgive borrowers up to $10,000 in debt relief, and up to $20,000 for Pell Grant recipients.
“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,” administration officials wrote in a fact sheet.
They said about 90% 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% of incomes in the United States.
Officials said by targeting relief to borrowers with the highest economic need, the administration’s actions are also likely to help narrow the racial wealth gap.
The White House noted that nearly 71% of Black undergraduate borrowers are Pell Grant recipients, and 65% of Latino undergraduate borrowers are Pell Grant recipients.
The Department of Education plans to soon release additional details on how individuals across the country can benefit from the administration’s student debt relief plan.
“President Biden believes that a post-high school education should be a ticket to a middle-class life, but for too many, the cost of borrowing for college is a lifelong burden that deprives them of that opportunity,” administration officials said ahead of Biden’s scheduled announcement. “During the campaign, he promised to provide student debt relief. Today, the Biden administration is following through on that promise and providing families breathing room as they prepare to start repaying loans after the economic crisis brought on by the pandemic.”
For more information, go to StudentAid.gov/debtrelief.