Stories from the Austin metro NEWS BRIEFS White House estimates 3.3M Texans eligible for student loan forgiveness
BY HANNAH NORTON
Abbott—signed a letter asking President Joe Biden to withdraw the student loan forgiveness plan. The letter argues wealthy Amer- icans will benet most from the plan because “borrowers with the most debt, such as $50,000 or more, almost exclusively have graduate degrees, meaning hourly workers will pay o the master’s and doctorate degrees of high-salaried lawyers, doctors and professors.” However, most high-salaried people will not be eligible for debt forgive- ness based on the income limit of $125,000 for individual borrowers. According to the White House, the plan is expected to help borrowers recover from the pandemic as loan payments resume in January. “Nearly 90% of relief dollars will go to those earning less than $75,000 per year—and no relief will go to any individual or household in the top 5% of incomes in the United States,” the Sept. 20 fact sheet said. The White House reported 71% of
Texas has the second-highest number of eligible borrowers, while California leads the way with 3.5 million eligible borrowers. How to apply for student debt relief The Department of Education will release an application to identify eligible borrowers in early October. After lling out the application, bor- rowers will receive relief in roughly four to six weeks, according to the FSA oce. The FSA oce encourages bor- rowers to apply before Nov. 15 to receive relief before the federal pause on student loan payments expires Dec. 31. Borrowers will be expected to resume payment of their student loans in January. However, eligible borrowers can apply for debt forgiveness through Dec. 31, 2023. Backlash against federal relief plan On Sept. 12, governors from 22 states—including Texas Gov. Greg
SEEING STUDENT LOAN RELIEF
Over 3 million Texans may benet from the federal student debt relief plan, which provides up to $20,000 in reimbursement for Pell Grant recipients and up to $10,000 for other eligible borrowers. According to data released Sept. 20, over 40 million borrowers in the United States and its territories are eli- gible for student loan forgiveness. This includes 3.3 million Texas borrowers, roughly two-thirds of which are Pell Grant recipients. Pell Grants are typi- cally given to low-income students. To be eligible for debt cancellation, individual borrowers must have an annual income of below $125,000 or below $250,000 for married couples, the White House reported. Relief is capped at a person’s amount of existing debt, according to the Federal Student Aid oce. That said, someone who is eligible for a $10,000 reimbursement but only has $5,000 in remaining debt will receive $5,000.
Of the more than 40 million borrowers estimated to be eligible for student debt relief, about 8.25% are from Texas.
Total: 40 million
Texas
To qualify for forgiveness borrowers must: • have an individual annual income below $125,000; or • have a total income below $250,000 for a married couple. Relief is capped at: • $20,000 for Pell Grant recipients; • $10,000 for other borrowers; and • the amount of a borrower’s existing debt if below these thresholds.
SOURCE: THE WHITE HOUSE COMMUNITY IMPACT
Black students with undergraduate loans are also Pell Grant recipients as well as 65% of Latino students.
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