President Joe Biden has announced to forgive up to $20,000 in student loan debt for millions of Americans, delivering on a promise he frequently touted on the campaign trail.
“In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023,” Biden announced in a tweet.
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Borrowers will be eligible for $10,000 in student loan forgiveness if they have an annual income of less than $125,000, or $250,000 for married couples, according to the Biden administration’s plan.
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If borrowers received a federal Pell grant and meet income qualifications, they would also eligible for an additional $10,000 in student debt cancellation.
The plan, that White House officials say will provide relief to low- and middle-income families, would also give a “final extension” of student loan repayments, pausing them through December 31, 2022.
Education officials estimate the plan to erase federal student loan debt for about 20 million Americans.
What's the average amount of federal student loan debt in Massachusetts?
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Massachusetts residents owe nearly $31 billion dollars of the country's entire federal student loan debt balance.
Nationally, the average amount of student loan debt for borrowers is $36,667, according to the Education Data Initiative. Massachusetts residents owe slightly less, on average: $34,146.
With nearly 7 million residents in the state, 902,000 of them have student loan debt and just over 63% are under the age of 35, the report says.
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