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The White House on Tuesday released an analysis of the number of people in each state likely to benefit from its student loan forgiveness plan, including a tally of borrowers who received a Pell Grant.
More than 3.5 million people are eligible for debt forgiveness in California, and in Texas, north of 3 million, according to the estimate by the US Department of Education.
There is no precedent for the sweeping loan relief announced by President Joe Biden last month, which could cost up to $1 trillion. As part of the Biden administration’s action, most borrowers will be eligible for up to $10,000 in forgiveness if they haven’t received a Pell grant, which is a type of aid available to students. low-income undergraduate, and up to $20,000 if they did.
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Most Pell Grant recipients come from families with incomes below $60,000, says higher education expert Mark Kantrowitz.
Borrowers should be able to apply for a rebate in October, and some 8 million people could have their loans automatically cleared because the government already has their income data. The relief is limited to individuals earning no more than $125,000 a year or households earning less than $250,000.
Rep. Ayanna Pressley, D-Mass., a longtime student loan forgiveness advocate, said she got emotional looking at the numbers. In his state, around 813,000 people will be affected.
“Behind every number there’s a person, there’s a family, there’s a story,” Pressley said, in a call with reporters about the results.
Here is a breakdown of affected borrowers by state.