$10,000 in student loan forgiveness would benefit many SCs

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Many South Carolina residents would get a $10,000 federal student loan forgiveness, but how many would see their debt completely wiped out?

PA

According to a new analysis, about 29.2% of South Carolina residents with federal student loans would see that debt completely wiped out if a $10,000 forgiveness were approved.

The percentage equates to 203,899 people in Palmetto State, according to a study of LendingTree, an online lending marketplace. The analysis comes after President Joe Biden promised to make a student loan forgiveness decision this month and some reports circulated that the administration was considering writing off $10,000 per borrower.

LendingTree used statistics from the US Department of Education to compile the analysis. The Washington Post previously reported that the Biden administration was considering forgiving $10,000 per federal borrower. Meanwhile, the current pause on federal student loan repayments is set to expire at the end of August.

“For highly indebted borrowers, the impact might be minimal, but it could potentially free others — one in three eligible borrowers, in fact — of all their federal student debt,” the national study says. “The difference is how much debt each borrower has and what kind of student loans they have.”

The study notes that only federal loans held by the government are likely to be eligible for forgiveness, representing about $1.4 trillion in outstanding debt. Those with privately managed federal or private student loans are unlikely to see forgiveness.

The study shows that South Carolina would rank 46th among states for the percentage of borrowers who would have their debt erased if $10,000 were forgiven.

Wyoming was ranked first, with 37.8% of borrowers expected to have their debt erased with a $10,000 forgiveness.

Meanwhile, about 56,887 people or 8.2% of federal student loan borrowers in South Carolina owe at least $100,000, meaning a $10,000 cut wouldn’t help much, the report said. .

The Biden administration has already eliminated $18.5 billion in loans for more than 700,000 Americans by temporarily expanding or streamlining existing rebate programs.

Here are more ways people can get student loan forgiveness.

  • The Cancellation of civil service loans program will cancel your loans after 10 years of public service. And in October 2021, this program was temporarily extended to include borrowers who were not previously eligible – although you must act by October 31, 2022.
  • The Teacher Loan Forgiveness Program offers up to $17,500 in student loan forgiveness after five years of work at a qualifying school.
  • You could get your student loan balance canceled after 20 or 25 years on a income-based repayment plan. Although you usually have to pay taxes on the amount remitted, the government waived this tax bill until at least January 1, 2026, with the American Rescue Plan Act of 2021.

Below is a list of the percentage of borrowers in each state who would have their federal student debt eliminated with a $10,000 forgiveness.

  1. Wyoming: 37.8%
  2. Nevada: 36.6%
  3. Utah: 36.4%
  4. North Dakota: 35.8%
  5. Alaska: 35.4%
  6. Oklahoma: 35%
  7. New Mexico: 34.8%
  8. Nebraska: 34.8%
  9. Louisiana: 34.8%
  10. West Virginia: 34.6%
  11. Iowa: 34.5%
  12. Arkansas: 34.4%
  13. Rhode Island: 34.3%
  14. Arizona: 34.3%
  15. Texas: 34.2%
  16. Mississippi: 34.1%
  17. Idaho: 33.8%
  18. California: 33.5%
  19. Kentucky: 33.3%
  20. Kansas: 33.3%
  21. South Dakota: 33.2%
  22. Wisconsin: 33.2%
  23. Montana: 33.1%
  24. Maine: 32.9%
  25. Hawaii: 32.7%
  26. Washington: 32.7%
  27. Indiana: 32.4%
  28. Massachusetts: 31.9%
  29. New York: 31.8%
  30. Florida: 31.6%
  31. Delaware: 31.6%
  32. New Jersey: 31.6%
  33. Tennessee: 31.5%
  34. Alabama: 31.5%
  35. Michigan: 31.4%
  36. Ohio: 31.4%
  37. Connecticut: 31.3%
  38. Illinois: 31.3%
  39. New Hampshire: 31.2%
  40. Missouri: 31.2%
  41. Colorado: 31%
  42. Minnesota: 30.8%
  43. Pennsylvania: 30.2%
  44. Vermont: 30%
  45. South Carolina: 29.4%
  46. North Carolina: 29.2%
  47. Maryland: 28.9%
  48. Georgia: 28.9%
  49. Virginia: 28.6%
  50. District of Columbia: 25.3%

Patrick McCreless is the on-duty journalism editor for The State, where he and a team of reporters write about the hottest news of the day and topics that help readers in their daily lives and better inform them about their communities. He attended Jacksonville State University in Alabama and grew up in Tuscaloosa, AL.

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