Student Loan Forgiveness: 6 States That Would Be Impacted The Most Through Biden’s Plan

Document with title student loan forgiveness.
designer491 / Getty Images/iStockphoto

On Feb. 28, President Joe Biden’s student loan forgiveness program will be taken up in the Supreme Court. Two cases are challenging the loan forgiveness program, which is currently paused due to legal proceedings.

Student Loan Forgiveness: Timeline of Events Leading Up To the Supreme Court Review
Learn: With a Recession Looming, Make These 3 Retirement Moves To Stay On Track

One case was brought by individual borrowers who did not qualify for the full $20,000 forgiveness. The other is by a group of Republican-led states: Arkansas, Iowa, Kansas, Missouri, Nebraska, and South Carolina.

Before the legal proceedings halted the student loan forgiveness, 26 million applications were submitted. As expected, large states with big populations had the most applications and lower population states had the least.

Approximately 16.5 million of those applications were approved for discharge. The White House recently released data showing the number of fully approved applications by state.

The six states that would be impacted most by Biden’s plan are as follows:

  • California – 1.47 million applications approved
  • Texas – 1.39 million applications approved
  • Florida – 1.05 million applications approved
  • New York – 998,000 applications approved
  • Pennsylvania – 743,000 applications approved
  • Ohio – 702,000 applications approved
Save for Your Future

The Department of Education’s data from last week shows how many borrowers per congressional district were fully approved for debt relief, with 60% to 65% of eligible borrowers applying or automatically deemed eligible in most districts.

Take Our Poll: How Much of a Tax Refund Do You Expect in 2023?
Discover: The IRS Has Refunded $15.7B as of Feb. 3 — Here’s How Much the Average Taxpayer Is Getting Back

In the six Republican-led states that are challenging the student loan forgiveness program, 1.1 million student loan borrowers have already been approved for forgiveness, with another estimated 2.9 million student loan borrowers that could potentially qualify.

Millions of Americans are waiting to see how the Supreme Court rules on the Biden student loan forgiveness program.

More From GOBankingRates

Save for Your Future

About the Author

Becky Neubauer is a personal finance and science freelance writer who specializes in writing about managing money, sustainability, entrepreneurship, and alternative living. She has a bachelor’s degree in environmental science, and she learned about personal finance on her journey to pay off $100,000 in student loans. Becky is an avid traveler focused on helping others live location-independent lifestyles, make money on the road, and travel the world through her website
Learn More

BEFORE YOU GO

See Today's Best
Banking Offers

1pximage