Student Loan Debt
11% of the U.S. population (approximately 38 million people) are estimated to be eligible for federal student loan relief.
Percent of population estimated to qualify for federal student loan debt relief plan
2022
Source: U.S. Department of Education and Census Bureau PEP.
In August 2022, the Biden administration announced their plan for one-time student loan debt relief.1 Under the plan, borrowers who made under $125,000 if single, or under $250,000 if married, are eligible for up to $20,000 in student loan debt relief. Eligible borrowers who received a Pell grant in college will receive up to the full $20,000, while all other eligible borrowers will receive up to $10,000. According to data from the U.S. Department of Education, approximately 38 million people are estimated to benefit from student loan debt relief.2
Just one month after borrowers were able to apply for the program, a federal court issued a nationwide injunction appealing the student loan debt relief plan, which required the Department of Education to halt all progress, including accepting new applications.3 In that one month, 66% (25.4 million) of eligible borrowers applied for debt relief, and 64% of those applications (16.3 million) were approved.4
Student loan repayments have been paused since March 2020 in response to the economic toll of the pandemic. The pause on student loan payments saved borrowers an average of $393 a month, an essential support as many struggled with unstable income over the course of the pandemic. Once student loan payments resume, it is estimated that roughly 18 million borrowers will lose $85.5 billion of their income annually.5
“One-time Federal Student Loan Debt Relief”. U.S. Department of Education. https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info#income
“FACT SHEET: The Biden-Harris Administration’s Plan for Student Debt Relief Could Benefit Tens of Millions of Borrowers in All Fifty States”. The White House. September, 2022. https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/20/fact-sheet-the-biden-harris-administrations-plan-for-student-debt-relief-could-benefit-tens-of-millions-of-borrowers-in-all-fifty-states/
“Appeals court grants injunction against Biden’s student loan forgiveness”. Douglas-Gabriel. The Washington Post. November, 2022. https://www.washingtonpost.com/education/2022/11/14/appeals-halts-student-loan-forgiveness/
“FACT SHEET: Biden-Harris Administration Releases New Data Showing 26 Million People in All 50 States Applied or Were Automatically Eligible for One-Time Student Debt Relief”. The White House. January, 2023. https://www.whitehouse.gov/briefing-room/statements-releases/2023/01/27/fact-sheet-biden-harris-administration-releases-new-data-showing-26-million-people-in-all-50-states-applied-or-were-automatically-eligible-for-one-time-student-debt-relief/
“How Canceling Student Debt Would Bolster the Economic Recovery and Reduce the Racial Wealth Gap”. Bustamante. Roosevelt Institute. December, 2021. https://rooseveltinstitute.org/2021/12/08/how-canceling-student-debt-would-bolster-the-economic-recovery-and-reduce-the-racial-wealth-gap/
