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Check 4 Charts That Show What Biden’s Student Loan Forgiveness Means for America

Like crumbling infrastructure or rising gas prices, student loan forgiveness is one of those far-reaching political issues that affect a huge swath of Americans.

Close to 1 in 5 Americans have student loans. That’s some 45 million people with a combined $1.75 trillion in student loan debt.

It will relieve $10,000 in loan debt per federal borrower with an individual income under $125,000 and a household income under $250,000; it will provide $20,000 in relief for borrowers that attended college on income-based Pell Grants.

The announcement is welcomed news for many borrowers as the CARES Act—which paused student loan repayments for most people with federal debt—was set to expire on August 31, 2022.

One-Third of Federal Borrowers Would See Their Debt Completely Forgiven

Even with $10,000 of student loan forgiveness per federal borrower, most Americans with student loans will still have some debt to repay.

The number of borrowers who fell behind on their loan payments temporarily decreased in the fall of 2021 due to COVID-19 relief efforts.

The Rising Cost of Tuition has Made It Harder for Students and Families to Pay for College

Tuition at private, nonprofit institutions increased more than tuition at public schools during this time period.

Loan balances rose right alongside tuition, too. Since 1990, the average loan balance at graduation has nearly quadrupled from just under $7,000 to $30,000 in 2020.

Average Federal Loan Packages Have Grown Faster Than the Average Grant Size

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