Americans who earn less than $125,000 annually can expect substantial relief when it comes to federal student loan debt, thanks to a forgiveness plan announced Wednesday by President Joe Biden.
Borrowers will have up to $10,000 in student debt erased as part of the plan, and up to $20,000 for those who received a Pell Grant while in college.
The loan forgiveness applies to student loans financed through the federal government.Eligible loans are normally offered when students apply for financial aid through FAFSA.
So just how many Californians will benefit from student loan forgiveness?
Get top local stories in Southern California delivered to you every morning. Sign up for NBC LA's News Headlines newsletter.
How Much Student Loan Debt do Californians Owe?
California ranks 13th highest among student loan debt by state, with borrowers holding an average $37,084, according to the Education Data Initiative.
In total, California’s student loan debt adds up to $141.8 billion, the largest monetary amount of any state.
Local
Get Los Angeles's latest local news on crime, entertainment, weather, schools, COVID, cost of living and more. Here's your go-to source for today's LA news.
More than 51% of California loan borrowers are under the age of 35 and 20% of borrowers owe from $20,000 to $40,000, the data shows.
About 3% of California borrowers owe more than $200,000.
How Many Student Loan Borrowers Live in California?
According to the Education Data Initiative, a total of 3,823,700 student loan borrowers live in California — with more than half being under the age of 35.
The data shows that Americans in the 25 to 34 age bracket are demographic with the most loan debt.
This accounts for just under 10% of residents in the state.
Which State Has The Highest Average Debt Per Borrower?
Though not technically a U.S. state, the District of Columbia has the nation’s highest average of student loan debt, with nearly $55,000 per borrower, the data shows.
What Does College Cost in California?
The annual tuition fee at the 23 California State University campuses is $5,742, according to the CSU.
Tuition at a University of California campus, like UC Berkeley or UCLA is much higher, costing $13,752 each year.
Taking housing, textbooks and other campus fees into account, California college students can expect a bill of much higher than simply tuition.
Here are five things to know about federal Pell grants.
