On Tuesday, April 13, 2021, According to U.S. Department of Education data released by Senator Elizabeth-Warren. That tens of millions of borrowers will forgive all federal student loans.
Senator Warren asked President Biden to use government agencies. So that to forgive each borrower’s $50,000 in federal student loan debt.
U.S Department of Education Student Loan Forgiveness Statistics
According to data from the U.S. Department of Education. Among 44,972,000 borrowers, 36,062,000 borrowers, or 80.2%, will completely abolish their federal student loans. That will bring each borrower’s student loan repayment to $50,000.
Data is based on Federal Direct Loan and Federal Family Education Loan (FFEL) program loan balances on December 31, 2020.
President Biden planned to allow $10,000 in federal student loan debt per borrower. According to the proposal, 15,022,000 borrowers will cancel their federal student loans or 33.4%.
These numbers are consistent with the estimates in the policy document regarding the student loan forgiveness program. The document predicts that 79.6% and 33.6% of borrowers will allow their federal student loans at a rate of $1,049 and $377 billion, respectively.
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Only restricting the forgiveness to borrowers with federal student loan debts of less than $50,000 or $10,000. That will reduce costs to $584 billion and $75 billion.
Education Department of U.S. also stated that. The number of financially deprived borrowers who had no federal student loans. Among the 10,347,000 defaulted or severely overdue borrowers (more than 90 days overdue). 9,838,000 (95%) of the student loan repayments were less than $50,000. And the loan was fully liquidated. 4,656,000 (45 %) will reduce the cancellation of the Student loan allowance of more than $10,000.
According to government data released by Senator Warren. Total 4,423,000 federal student loan borrowers (9.8%) have been repaid to 2042.
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