Monday, May 20, 2024

White House counts more than 1 million in Louisiana eligible for student debt relief

by BIZ Magazine

By Piper Hutchinson, Louisiana Illuminator

According to the White House, more than 1 million Louisiana residents – or a fifth of the state’s population – will be eligible for student debt relief.

Of that number, about 608,000 are eligible for $10,000 in federal student loan forgiveness and in excess of 435,000 will be eligible for $20,000 in loan forgiveness. The increased forgiveness is for students who received the Pell Grant, which serves economically disadvantaged students.

To be eligible for debt forgiveness, borrowers need to earn less than $125,000 per year, or $250,000 as a couple. According to the U.S. Census Bureau, the median household income in Louisiana is about $50,000.

The application for the one-time debt relief is expected to open in early October.

The Biden administration expects 40 million Americans to eligible for the debt relief, with about half of those having their entire debt forgiven, according to the press release from the U.S. Department of Education.

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