Are you a current student working multiple jobs to get ahead on your loans, or graduate debt-free? Email reporter Isabel Engel if you’re interested in being featured in a future Make It article.
Last week, the Biden administration announced student debt relief would be coming for over 800,000 borrowers, thanks to fixes to income-driven repayment plans.
A total of $39 billion in debt forgiveness will be rolling out in the coming weeks for borrowers with older student loans. Those on IDR plans become eligible to have their remaining balances forgiven after 20 or 25 years of payments, depending on the loan type and when they took it out.
Eligible borrowers have already begun receiving notifications that they will see some or all of their debts cleared, and the administration says discharges will begin 30 days later.
States with the most borrowers who will see forgiveness
The Biden administration this week released data on how many borrowers are eligible and the total amount of debt able to be forgiven in each state.
Unsurprisingly, the states with the largest student loan borrower populations are among those where the most people will get debt relief under this initiative.
California, Texas and Florida have the largest student borrower populations, according to the latest data from the New York Federal Reserve, as well as the highest number of borrowers borrowers receiving relief.
Here are the states with the most borrowers currently eligible for IDR debt forgiveness:
1. Texas
- Eligible borrowers: 63,730
- Debt eligible for discharge: $3.09 billion
- Average amount per borrower: $48,514
2. Florida
- Eligible borrowers: 56,930
- Debt eligible for discharge: $3.04 billion
- Average amount per borrower: $53,343
3. California
- Eligible borrowers: 61,890
- Debt eligible for discharge: $2.96 billion
- Average amount per borrower: $47,807
4. Georgia
- Eligible borrowers: 38,590
- Debt eligible for discharge: $2.13 billion
- Average amount per borrower: $55,206
5. New York
- Eligible borrowers: 42,070
- Debt eligible for discharge: $1.92 billion
- Average amount per borrower: $45,736
6. Ohio
- Eligible borrowers: 37,070
- Debt eligible for discharge: $1.74 billion
- Average amount per borrower: $46,855
7. Pennsylvania
- Eligible borrowers: 29,840
- Debt eligible for discharge: $1.34 billion
- Average amount per borrower: $45,023
8. Illinois
- Eligible borrowers: 28,450
- Debt eligible for discharge: $1.32 billion
- Average amount per borrower: $46,257
9. Michigan
- Eligible borrowers: 26,980
- Debt eligible for discharge: $1.27 billion
- Average amount per borrower: $46,972
10. North Carolina
- Eligible borrowers: 24,870
- Debt eligible for discharge: $1.14 billion
- Average amount per borrower: $45,641
More debt forgiveness in the works
Though the Supreme Court shut down President Biden’s plan for mass student loan forgiveness, his administration immediately started working on a back-up plan to bring relief to borrowers.
The administration is now going through a process known as “negotiated rulemaking” with the hopes of making changes to the Higher Education Act that will allow for debt forgiveness. The process kicked off with a public hearing earlier this week.
Borrowers and advocates delivered testimonies on why student debt should be forgiven and for whom, while opponents reinforced their opinion that Congress is the only government agency with the authority to cancel federal loans.
DON’T MISS: Want to be smarter and more successful with your money, work & life? Sign up for our new newsletter!
Take your business to the next level: Register for CNBC’s free Small Business Playbook virtual event on August 2 at 1 p.m. ET to learn from premier experts and entrepreneurs how you can beat inflation, hire top talent and get access to capital.
