DENVER (KDVR) — Student loan relief is on the way for the majority of federal loan borrowers.
President Joe Biden announced Wednesday that up to $20,000 in student debt will be forgiven for federal student loan borrowers. Additionally, borrowers will not be required to make monthly payments until 2023; a continuation of the payment freeze that has been in place since the beginning of the COVID pandemic.
Borrowers must make less than $125,000 a year to qualify, or $250,000 for households. The White House says this will benefit the majority of the nation’s 43 million borrowers owing a collective $1.6 trillion. Data agrees. According to the Education Data Initiative, three-fourths of federal loan borrowers make less than $121,000.
With nearly 4 million student loan borrowers, California will see the most widespread impact from the president’s executive order.
Texas has the nation’s second-highest with 3.6 million student borrowers. Next come Florida with 2.7 million, New York with 2.4 million, Pennsylvania with 1.8 million, Ohio with 1.77 million, Georgia with 1.64 million and Illinois with 1.6. million.
Colorado has 771,200 student loan borrowers.
The District of Columbia has the nation’s highest debt per borrower. Federal loan holders in the nation’s capital owe $55,077 per borrower.
Nearby Maryland has the second-highest debt average, with $43,218 per borrower.
Georgia, Virginia, South Carolina and Florida come next.
Colorado is on the higher end of the spectrum with just over $37,000 in average debt per borrower.
In only one state, North Dakota, do student borrowers owe an average debt of less than $30,000.