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2.25 million NY residents would be eligible for student loan relief

Associated Press
Posted 9/22/22

The Biden administration has released new data estimating how many borrowers in each state can get at least some of their federal student debt canceled.

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2.25 million NY residents would be eligible for student loan relief

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WASHINGTON, D.C. — The Biden administration has released new data estimating how many borrowers in each state can get at least some of their federal student debt canceled. It ranges from more than 3 million in California and Texas to 2.25 million in New York to fewer than 50,000 in Wyoming.

In total, the data show nearly 40 million Americans will be eligible for President Joe Biden’s student debt forgiveness. Those with incomes of less than $125,000 will be eligible for $10,000 in cancellation. People who received federal Pell grants to attend college can get another $10,000.

The new estimates, released Tuesday, also show how many Pell grant recipients are eligible for debt cancellation in each state. In states like Mississippi and New Mexico, roughly 75% of people eligible for debt cancellation received Pell grants, meaning they can get $20,000 erased.

In New York, just over half of those eligible for the student loan debt cancellation, 1.3 million, would also be eligible for the larger Pell grant cancellation.

Whether borrowers actually see the relief depends on whether Biden’s plan survives legal challenges that have been promised by conservatives. Most borrowers will need to request debt cancellation through an application that the Biden administration says will be available by early October.

Supporters say debt cancellation will boost the economy and narrow the wealth gap. Progressive Democrats in Congress and the NAACP have been among the most ardent supporters.

Opponents say it’s too costly and unfairly helps college graduates at the expense of taxpayers who didn’t go to college. Republicans uniformly oppose it, and even some liberal think tanks question the value of broad cancellation.

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