Biden cancels $10,000 of student loansIf Biden enacts wide-scale student loan cancellation, expect $10,000 of student loan forgiveness. According to the Federal Reserve, $10,000 of student loan forgiveness would:forgive a total of $321 billion of federal student loans;eliminate the entire balance for 11.8 million borrowers;cancel 30.5% of student loans in student loan delinquency or student loan default before the Covid-19 student loan payment pause; andthe average student loan borrower would receive $8,478 in student loan forgiveness. According to the Federal Reserve, $50,000 of student loan forgiveness would:forgive a total of $904 billion of federal student loans;eliminate the entire federal student loan balance for 29.9 million borrowers;cancel 77% of student loans in student loan delinquency or student loan default before the Covid-19 student loan payment pause; andthe average student loan borrower would receive $23,856 in student loan forgiveness. (The U.S. Department of Education has estimated that $50,000 of student loan cancellation would eliminate the entire federal student loan balance for 36 million student loan borrowers, which is more than the Federal Reserve estimated). Temporary student loan relief ends on August 31, 2022, and Biden may wait until then to announce his decision on student loan forgiveness.

Source: Forbes June 21, 2022 17:53 UTC