Washington Examiner

Education Department reveals states with highest number of student loan borrowers for Biden’s loan forgiveness plan.

President Biden’s Student⁢ Loan ⁤Forgiveness Plan‌ Targets California, Florida, and Texas

Last week,⁣ President ⁢Joe Biden’s administration⁢ made a renewed effort to provide billions in student loan ⁣cancellations, with the majority‌ of affected borrowers residing ​in ‌the ⁤influential states of California, ‍Florida,​ and ⁢Texas.

The Biden administration recently released ⁢state-specific⁣ data on ‌student ​loan forgiveness,⁤ following ⁢the ⁢Department⁤ of Education’s notification ⁤to⁢ 804,000 ⁢borrowers⁢ that their student loans would​ be​ automatically discharged, totaling $39 billion.

Adjustments to Repayment Plans

The⁤ Department‍ of Education announced ‌changes​ to calculating payments⁢ for ​income-driven repayment‍ plans.​ These ⁣adjustments will result in ‍reduced balances‌ for ⁣borrowers⁤ who have ‌made payments over the ⁢past 20-25 ‍years. Additionally, the Education Department ⁣will ‍now consider ​partial ​or late ‌payments and deferred payments⁣ towards the repayment⁤ process.

These‌ repayment changes ⁤come after‍ the‍ Supreme Court‌ rejected ‍Biden’s plan to​ forgive up‌ to $20,000 in⁣ student ‌loans ‍for ⁤borrowers ‌earning‌ less than $125,000. As a result, ⁤the administration ‍is ⁤exploring alternative measures to⁢ implement broader ‌student ‌loan relief, which is expected ​to be ​a ‍key​ focus‌ of ​Biden’s⁣ reelection campaign.

Concerns and ⁤Legal Standing

The $39⁣ billion‍ forgiveness⁤ plan has ‌raised questions among lawmakers and officials regarding ​its ⁢fate, ⁤similar‍ to ​the⁢ broader⁤ forgiveness plan. However, experts suggest ‌that since Congress already authorized loan forgiveness in connection⁣ with income-driven⁢ repayment plans⁣ in​ the⁤ 1990s, Biden’s ⁣relief plan is likely ‌on solid legal footing.

Attorney Abby⁤ Shafroth,⁤ co-director ⁢of advocacy‍ and ⁣director of ⁤the⁢ student loan borrower assistance program ⁢at ⁤the National ⁣Consumer Law Center, emphasized that the ​Biden administration is ⁣legally ‍obligated to ⁤rectify any instances where⁣ forgiveness ⁣has⁤ not ‌occurred due ‍to administrative errors.

“This program​ is‌ specifically designed ⁤for ⁣individuals⁣ who have been⁤ in repayment for ⁣decades,” ‌Shafroth stated.

State Breakdown: California

California has the⁢ highest number ⁣of​ eligible⁢ borrowers ⁤for​ student loan forgiveness, with 61,890 individuals.​ As ⁣a⁢ blue‌ trifecta‌ state, where⁤ Democrats hold ‍both chambers of the legislature⁢ and‍ the‍ governor’s office, ⁤California‌ strongly supported​ President Biden in ‍the⁤ 2020 election.⁤ By continuing ‌to advocate ​for⁣ student loan forgiveness, ⁤Biden is⁣ likely to⁢ gain additional support for his 2024 reelection campaign.

Governor ⁤Gavin ⁣Newsom (D-CA) has⁢ been ⁤a proponent of student loan forgiveness. ⁢In‍ March, he ‍signed budget ‍bills⁣ that ⁤included‍ an income tax exemption ​for forgiven ⁣federal ‍student ‌loans. ⁢Prior ⁤to this,‍ California was one of ‌seven states where residents​ could​ face a ‍tax‍ bill for canceled student⁢ loans. Under⁢ Biden’s ‌adjusted​ income-driven repayment plan, California ⁣residents‍ are‍ eligible for $2,958.80 million in⁤ debt relief.

State Breakdown: ⁣Florida

Florida ​has 56,930 ⁢borrowers eligible‌ for student loan‌ forgiveness, amounting to ⁣$3,036.80​ million ⁢in debt⁤ relief. ​As a red⁢ trifecta state, ⁢Florida ⁢stands ​in contrast to California’s political landscape.

Governor Ron​ DeSantis‌ (R-FL),⁤ who ⁤is running for president⁣ in⁤ 2024, has⁣ been​ a ‍vocal⁢ critic‌ of the Biden administration’s broader student⁤ loan ​forgiveness⁤ plan, deeming⁤ it⁣ “very ‌unfair.” Florida⁣ offers two state-specific student loan relief programs ​for‌ nurses and ⁢lawyers.

In⁤ September ‌2022, Governor DeSantis ⁣joined ‌21 ⁣other Republican governors in signing⁣ a letter urging President ‌Biden‍ to withdraw his ​student loan plan. During his campaign, DeSantis proposed ​holding universities ‍accountable for ‍students ‌unable​ to repay their‌ loans.

State Breakdown: Texas

Texas, another‌ state ⁤with ​a red trifecta, has ​63,730 eligible borrowers for‌ debt ⁤relief under ​Biden’s‍ $39 ⁢billion forgiveness‌ plan, ⁢totaling ​$3,091.80 million.

Texas ‍offers nine⁤ student loan forgiveness ⁣programs‌ targeting specific⁢ professions, including nurses, doctors, legal aid ⁤attorneys, teachers, and ‌employees‌ in the state​ attorney⁣ general’s office.

Republican ‍lawmakers in‌ the Texas ⁢state legislature have introduced⁢ several bills ​during the ‌current session, ⁣aiming to expand existing policies​ and⁢ create new⁣ programs for ‌math and⁣ science ⁢teachers,⁣ attorneys ‌in ⁣rural ⁤areas, mental health professionals, and​ other workers.

For a comprehensive breakdown from⁤ the​ Department of Education, click here.



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