[Update: The numbers referenced in this article are subject to change. On Thursday, NPR reported the White House had amended its plan, resulting in 770,000 fever borrowers being eligible for help.]
More than 2.5 million Ohio student loan borrowers will benefit from the Biden administration’s student debt relief plan.
Last month, President Biden announced relief of up to $10,000 to those who owe student loans and up to $20,000 for Pell Grant recipients, according to a press release. Most of the debt relief will be available for families earning less than $75,000 per year, but none will go to earners in the top 5%.
By providing more relief for federal Pell Grant recipients, the Biden administration says it intends to narrow the racial wealth gap. Nearly 71% of Black undergraduate borrowers are Pell Grant recipients, along with 65% of Latino undergraduate borrowers. Thus, both groups will receive more debt relief.
However, Pell Grants typically don’t require repayment. According to StudentAid.gov, borrowers only have to repay a grant if they drop out of a program or receive other scholarships that reduced their financial hardship. For the 2022-23 academic year, Pell Grants were capped at $6,895 per recipient.
The U.S. Department of Education recently released a fact sheet on how the Biden plan could benefit tens of millions of borrowers in all 50 states, Washington, D.C., and Puerto Rico.
According to the release, more than 40 million borrowers across the nation are eligible, with nearly half of them having their entire remaining balance discharged.
The press release estimates that approximately 1.7 million Ohio borrowers and 1.1 million Pell Grant recipients will be eligible.
To learn more, visit StudentAid.gov/debtrelief.
