The Biden administration on Tuesday released a state-by-state estimate of how its student debt relief plan will impact borrowers in the 50 U.S. states, Washington, D.C., and Puerto Rico.
Analysis from the Department of Education shared by the White House shows state-by-state data on how many people are estimated to be eligible for student debt relief. According to the data, states with larger populations have more borrowers eligible for student debt relief. These states include California, Florida, New York, and Texas.
According to the estimates, for California, more than 3.5 million people are eligible for the $10,000 debt relief, and about 2.3 million Pell Grant recipients are eligible for the $20,000 debt relief. For Florida, 2.4 million are eligible for the $10,000 relief, and 1.7 million Pell Grant recipients are eligible for the $20,000 relief.
'Narrow the Racial Wealth Gap'The White House stated that nearly 90 percent of the student debt 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 [percent] of incomes in the United States."
"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 fact sheet reads.
It noted: "Nearly 71 [percent] of Black undergraduate borrowers are Pell Grant recipients, and 65 [percent] of Latino undergraduate borrowers are Pell Grant recipients."
The Department of Education is expected to release more details in the near future about how people can apply for debt relief.
"What about the people who went to community college and worked full-time so they didn’t have to take out a loan? They’re going to have to pay taxes to pay for the forgiveness of a loan that some upper-middle-class student took out," Wolfram said, adding, "And what about the people who paid back their loan? Everybody who paid it back should get a check for $10,000. That would be the rational thing to do."
He further noted that Biden has not explained why those who took out student loans are more deserving of a break than others, such as people who struggle to make mortgage payments under the terms of their Federal Housing Administration loans.