Student loan borrowers in these 10 states will have over $45,000 in debt forgiven, on average

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Last week, the Biden administration announced student debt relief would be coming for over 800,000 borrowers, thanks to fixes to income-driven repayment plans. 

A total of $39 billion in debt forgiveness will be rolling out in the coming weeks for borrowers with older student loans. Those on IDR plans become eligible to have their remaining balances forgiven after 20 or 25 years of payments, depending on the loan type and when they took it out. 

Eligible borrowers have already begun receiving notifications that they will see some or all of their debts cleared, and the administration says discharges will begin 30 days later. 

The Biden administration this week released data on how many borrowers are eligible and the total amount of debt able to be forgiven in each state. 

Unsurprisingly, the states with the largest student loan borrower populations are among those where the most people will get debt relief under this initiative.

California, Texas and Florida have the largest student borrower populations, according to the latest data from the New York Federal Reserve, as well as the highest number of borrowers borrowers receiving relief. 

Here are the states with the most borrowers currently eligible for IDR debt forgiveness:

1. Texas

• Eligible borrowers: 63,730
• Debt eligible for discharge: $3.09 billion
• Average amount per borrower: $48,514

2. Florida

• Eligible borrowers: 56,930
• Debt eligible for discharge: $3.04 billion
• Average amount per borrower: $53,343

3. California

• Eligible borrowers: 61,890
• Debt eligible for discharge: $2.96 billion
• Average amount per borrower: $47,807

4. Georgia

• Eligible borrowers: 38,590
• Debt eligible for discharge: $2.13 billion
• Average amount per borrower: $55,206

5. New York

• Eligible borrowers: 42,070
• Debt eligible for discharge: $1.92 billion
• Average amount per borrower: $45,736

6. Ohio

• Eligible borrowers: 37,070
• Debt eligible for discharge: $1.74 billion 
• Average amount per borrower: $46,855

7. Pennsylvania

• Eligible borrowers: 29,840
• Debt eligible for discharge: $1.34 billion 
• Average amount per borrower: $45,023

8. Illinois

• Eligible borrowers: 28,450
• Debt eligible for discharge: $1.32 billion 
• Average amount per borrower: $46,257

9. Michigan

• Eligible borrowers: 26,980
• Debt eligible for discharge: $1.27 billion
• Average amount per borrower: $46,972

10. North Carolina

• Eligible borrowers: 24,870
• Debt eligible for discharge: $1.14 billion
• Average amount per borrower: $45,641

Though the Supreme Court shut down President Biden’s plan for mass student loan forgiveness, his administration immediately started working on a back-up plan to bring relief to borrowers. 

The administration is now going through a process known as “negotiated rulemaking” with the hopes of making changes to the Higher Education Act that will allow for debt forgiveness. The process kicked off with a public hearing earlier this week. 

Borrowers and advocates delivered testimonies on why student debt should be forgiven and for whom, while opponents reinforced their opinion that Congress is the only government agency with the authority to cancel federal loans.

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