Student Loan Forgiveness: How Wisconsin borrowers could be affected

Student Debt Forgiveness
Student Debt Forgiveness(MGN)
Published: Aug. 25, 2022 at 12:45 PM CDT
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MADISON, Wis. (WSAW) - The student loan forgiveness measures announced Wednesday by President Joe Biden could mean the elimination of college loan debt for thousands of people in Wisconsin. According to data from the U.S. Department of Education, 687,600 Wisconsinites have debt from federal student loans totaling $21.4 billion.

The announcement by the Biden Administration forgives federal student loan debt of up to $10,000 and an additional $10,000 if the borrower received Pell Grants. The forgiveness applies to those earning less than $125,000, or $250,000 for married couples.

Nationally, the U.S. Department of Education says 87% of the debt cancellation will be going to borrowers who make less than $75,000 a year.

Wisconsin’s student loan debt is lower than the national average and the rest of the country, according to an analysis by the Education Data Initiative.

The average debt is $31,122.75 per borrower in Wisconsin, according to Student Success Through Applied Research Lab’s analysis of US Dept of Education data.

In Wisconsin, 57.7% of the state’s borrowers of federal financial aid are under the age of 35. Among the state’s indebted student borrowers, 17.2% owe less than $5,000.