What Biden’s Student Loan Forgiveness Plan Means for 45 Million Borrowers

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By Anna Helhoski

President-elect Joe Biden’s proposal to forgive $10,000 of federal student debt as Covid relief could erase loan balances for 15 million borrowers and reduce balances for millions more, according to federal data.

Broad student loan forgiveness could affect 45.3 million borrowers with federal student loan debt who owe a total of $1.54 trillion to the government. Wiping out $10,000 each — as Biden calls for — would result in up to $429 billion canceled.

Seth Frotman, executive director of the Student Borrower Protection Center, says removing the student loans “albatross around their financial lives” could mean the difference for consumers who aspire to buy a house, save for retirement or start a business.

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