Please check back for updates.īiden admin is 'talking daily' about student loan forgiveness, expects decision in 'next week or so'Įducation Department cancels $3.9 billion in student debt for more than 200,000 borrowers-here's who qualifies Women hold roughly two-thirds of all student debt in the United States, the American Association of University Women (AAUW) reports, while Black and African American college graduates owe an average of $25,000 more in student loan debt than white college graduates, according to the National Center for Education Statistics. While the diverse population of student debt holders includes people from different political parties, professions, ages and races, there are some people that fall deeper into student debt than others: women and people of color. Still, some lawmakers and advocates have argued that $10,000 isn't enough, urging the government to cancel at least $50,000 per borrower instead. More than half of Americans - 51% - support the $10,000-per-borrower plan, according to a recent survey of 1,500 Americans from An Economist/YouGov.īiden has pledged to cancel at least $10,000 of student debt per borrower since his 2020 campaign for president. At least 12 million borrowers will see their debt to the federal government disappear as a result of the decision, which should also wipe out at least $321 billion in federal student loans, according to the Federal Reserve - however this estimation is from April 2022 and did not include the $20,000 cancellation for Pell Grant recipients, so those numbers could be higher.
More than 40 million Americans are saddled with student loan debt, an amount that has ballooned to more than $1.7 trillion. The department's repayment freeze, which was first enacted in March 2020, has been extended four times since Biden took office and is set to end Aug. 31, will be extended "one final time" through Dec. In the same tweet, Biden announced that the pause on student loan repayment, interest and collections, which was set to expire on Aug. Most borrowers would need to apply for the program online, according to, which noted that an application will become available "in the coming weeks." Nearly 8 million borrowers for whom the Department of Education has income information available, however, should be eligible to receive debt relief automatically. "In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023," Biden tweeted, adding that he will share more details of the plan Wednesday afternoon.
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