Hundreds of thousands of Washington residents may be eligible to have student loans forgiven through a plan announced Wednesday by President Joe Biden.
On Wednesday, Biden said he would provide $10,000 in student debt cancellation for people earning less than $125,000 a year or families earning less than $250,000. Pell Grant recipients, who often have the most significant financial need, would be eligible for an additional $10,00 in loan forgiveness.
Biden also said a freeze on student loan payments will be extended one final time, until Dec. 31. Federal loan payments were paused in March 2020 at the start of the pandemic.
While details on applying for forgiveness are sparse, and critics believe the White House will likely face lawsuits over the plan, around 43 million Americans could be affected including hundreds of thousands of Washington residents.
According to a 2017 report released by the state Attorney General's office, there were over 760,000 people in Washington who had student loans by the end of 2012. The average student loan debt, including both federal and private loans, was $23,900 in 2012. Only federal loans are eligible for forgiveness under Biden's plan.
Around 47% of 2020 graduates of Washington colleges had student loan debt, according to the Institute for College Access and Success, an advocacy organization. The organization also found that on average, 2020 graduates of Washington colleges have over $23,900 in debt, making Washington the sixth lowest state in terms of average college student debt.
According to the organization, 16% of 2020 Washington college graduates have nonfederal debt, which is often costlier and has fewer consumer protections. In Washington, 6% of college graduates have private student debt from banks and private lenders, with an average debt burden of $31,237.
