Student Loan Cancellation Affects These States Most

National Correspondent

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The Biden administration outlined a new round of federal student loan forgiveness on Wednesday as borrowers brace for payments to restart after a three-year pause that began during the COVID-19 pandemic.

It will help 125,000 borrowers by erasing $9 billion in debt through existing programs, the White House said.

Since the U.S. Supreme Court's conservative majority struck down President Joe Biden's original effort to cancel $400 billion in student loan debt, he has been relying on different programs to help borrowers.

The high court's decision was responsible for "snatching from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives," Biden said in remarks on Wednesday.

President Joe Biden delivers remarks on new efforts to cancel student debt and support borrowers at the White House on October 4, 2023, in Washington, D.C. Kevin Dietsch/Getty Images

He has pledged to push ahead with a new debt relief plan grounded in the Higher Education Act. In the meantime, Biden's efforts to cancel student debt have involved using existing programs to help borrowers, such as public service loan forgiveness.

"This kind of relief is lifechanging for individuals and their families, but it's good for our economy as a whole, as well," he said on Wednesday. "By freeing millions of Americans from the crushing burden of student debt, it means they can go and get their lives in order. They can think about buying a house. They can start a business. They can be starting a family. This matters. It matters in their daily lives."

In a statement, Education Secretary Miguel Cardona said: "For years, millions of eligible borrowers were unable to access the student debt relief they qualified for, but that's all changed thanks to President Biden and this administration's relentless efforts to fix the broken student loan system.

"The Biden-Harris administration's laser-like focus on reducing red tape, addressing past administrative failures, and putting borrowers first have now resulted in a historic $127 billion in debt relief approved for nearly 3.6 million borrowers."

The Education Department released a breakdown showing the number of borrowers impacted by debt relief in each state.

Below are the states where the most borrowers have had their debt canceled, and the total amount discharged, since Biden took office.

Borrowers with process Public Service Loan Forgiveness discharges:

California: 60,680 borrowers, $4.45 billion

New York: 56,540 borrowers, $3.84 billion

Texas: 45,600 borrowers, $3.21 billion

Florida: 40,410 borrowers, $3.33 billion

Pennsylvania: 31,670 borrowers, $2.21 billion

Ohio: 31,290 borrowers, $2.14 billion

Georgia: 29,160 borrowers, $2.56 billion

Illinois: 27,550 borrowers, $1.94 billion

Michigan: 25,410 borrowers, $1.75 billion