President Joe Biden canceled $1.2 billion in student loans. How many Iowans benefit?
More than 150,000 borrowers nationwide had their student loans canceled this week thanks to a $1.2 billion forgiveness signed by President Joe Biden.
This loan forgiveness, announced by the U.S. Department of Education on Wednesday, targets a specific group of longtime borrowers enrolled in the department’s repayment plan, which adjusts monthly bills based on income. This came just a day before a group of federal negotiators is set to discuss broader plans for even more student debt relief.
This is the first batch of forgiveness to come through since the department sped up its timeline last month for implementing Biden’s income-based repayment plan, Saving on a Valuable Education, or SAVE.
“From day one of my Administration, I vowed to fix student loan programs so higher education can be a ticket to the middle class – not a barrier to opportunity.” Biden wrote in an email to eligible borrowers. “I hope this relief gives you a little more breathing room.”
How many Iowans will have their student loan debt forgiven?
Iowans who are paying down their federal student loans owe an average of nearly $31,000, according to federal data, meaning Biden's announcement to forgive some debt could make a sizable dent in their payments.
In January, the department reported there were 68,400 borrowers in Iowa enrolled in SAVE. It's unknown how many qualified for the round of forgiveness announced this week.
To make the cut, Iowans needed to have been in repayment for at least 10 years on federal student loans of $12,000 or less. Loans will be reviewed on a "regular basis" to forgive debt once a borrow meets the criteria.
Student loan forgiveness programs: 10 options and how to qualify
How many Iowans have student loan debt?
Iowa borrowers represent 13% of the state's population, according to data from Federal Student Aid. The percentage of Iowans who are paying off student loans ranks 14th highest in the U.S., the data show.
But on average, those borrowers owe $30,988 per person. Only North Dakotans owe less per person.
At $4.98 billion, Iowans between the ages of 35 and 49 collectively owed the most federal student loans out of any age group (37%).
USA Today reporter Zachary Schermele contributed to this report.
Victoria Reyna-Rodriguez is a general assignment reporter for the Register. Reach her at vreynarodriguez@registermedia.com or follow her on Twitter @VictoriaReynaR.
This article originally appeared on Des Moines Register: Thousand of Iowans could benefit from SAVE student loan forgiveness
