Release Date: July 18, 2023 5:02 AM ET
The Biden administration will revamp the existing student loan forgiveness program, with more than 800,000 borrowers getting $39 billion in debt forgiven.
Education Department data released Tuesday morning showed that Texas had the most borrowers to benefit from reforms and debt forgiveness.
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The Biden administration will revamp the existing student loan forgiveness program, with more than 800,000 borrowers getting $39 billion in debt forgiven.
Education Department data released Tuesday morning showed that Texas had the most borrowers to benefit from reforms and debt forgiveness.
Texas, California and Florida are the three states with the highest number of borrowers whose student debt has been written off by modifications to the program, known as income-driven repayment, according to data from the Department of Education.
About 64,000 Texans are expected to have about $3.1 billion in student loans canceled as a result of paying their debts through the IDR program over the past 20 years.
President Joe Biden: Republican lawmakers who had no problem letting the government forgive millions of dollars in business loans to stop me from providing relief to hard-working Americans We’ve done everything we can,” President Joe Biden said. said on fridayannounced plans. “There are those who oppose the measures we are announcing today, following relief promised to borrowers but not granted after decades of paying.”
“The hypocrisy is astounding and the disregard for working and middle-class families is egregious,” Biden added.
| state | number of borrowers | Forgiveable Debt (Millions) |
| texas | 63,730 | $3,091.80 |
| California | 61,890 | $2,958.80 |
| florida | 56,930 | $3,036.80 |
| new york | 42,070 | $1,924.10 |
| Georgia | 38,590 | $2,130.40 |
On the lower tier, loan forgiveness due to IDR amendments is least likely to help borrowers in Alaska, Wyoming and Hawaii. In Alaska, federal data reveals that only 970 student debtors will have their debts canceled under the IDR Amendment.
Last year, the Biden administration and the Department of Education announced The bank will review the accounts of all student loan borrowers to ensure that their monthly payments on their debts are accurately counted, he said.
This count is an important part of the Income-Driven Repayment Program, which allows debtors to pay off their debt over 20 or 25 years in proportion to their income and forgive the rest.
Until the amendment was announced, few people received loan forgiveness in exchange for 20 to 25 years of debt repayment.
To be clear, the administration-announced cancellation is not the broad loan forgiveness proposal that the Biden administration has been pushing. The U.S. Supreme Court nullified the president’s plan in June.
This forgiveness came about as a result of a government program in which debtors were promised loan forgiveness in exchange for repaying their debts for 20 years.
Jillian Berman contributed to this report.
