(WHTM) – Nearly three million Pennsylvanians could benefit from the Biden Administration’s planned student debt relief.
According to the Department of Education, a total of 2,706,100 Pennsylvania residents could benefit from debt relief.
Of those borrowers, there are an estimated 1,717,300 Pennsylvanians eligible for student debt relief and an estimated 988,800 Pennsylvania Pell Borrowers eligible for debt relief.
Last month, President Biden announced his Administration’s plan to give working and middle-class Americans more breathing room by providing up to $20,000 in debt relief to Pell Grant recipients and up to $10,000 to other borrowers.
The Biden Administration expects that over 40 million borrowers are eligible for its student debt relief plan, and nearly 20 million borrowers could see their entire remaining balance discharged.
Officials say nearly 90% of relief dollars will go to those earning less than $75,000 per year and no relief will go to any individual or household in the top 5% of incomes in the United States.
For more information on student debt relief visit StudentAid.gov/debtrelief.
Republicans quickly denounced the plan as an insult to Americans who have repaid their debt and to those who didn’t attend college. Critics across the political spectrum also questioned whether Biden has authority for the move, and legal challenges are virtually certain.
Biden also extended a pause on federal student loan payments for what he called the “final time.” The pause is now set to run through the end of the year, with repayments to restart in January.
“Both of these targeted actions are for families who need it the most: working and middle-class people hit especially hard during the pandemic,” Biden said at the White House on Wednesday afternoon.
The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans. Current college students qualify if their loans were issued before July 1. For dependent students, their parents’ household income must be below $250,000.