On Aug 24, President Joe Biden announced he will cancel up to $10,000 in federal student loan debt for borrowers who earn less than $125,000 a year, or families earning less than $250,000. The Biden administration will also cancel up to an additional $10,000 in federal loan debt for Pell Grant recipients. Government data shows who will benefit from student debt cancelation.
As of 2022, 43 million people owe federal student loans, averaging about $36,000 per person. Without considering the income limit, about a third of all borrowers currently owe less than the $10,000 cancellation amount. Others will see a benefit from larger debt amounts decreasing. This includes women who, on average, owe larger amounts of loans than their male counterparts.
