Aug 25, 2022 - News
Student debt will vanish for 100,000 Utahns under Biden plan
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Maura Losch/Axios
President Biden's student loan forgiveness plan will entirely erase student debt for about 100,000 Utahns — and another 60,000 could see theirs cut at least in half.
Driving the news: Yesterday's move canceled up to $10,000 in student loans — $20,000 for Pell Grant recipients — for borrowers who make less than $125,000 a year.
- More than 90% of Utahns make less than that.
By the numbers: More than 300,000 Utahns are paying off student loans, most under $20,000, according to federal loan data.
- Utahns' average student debt (a bit over $30,000) is lower than in most of the country, which means $10,000 is real money here — not just a drop in the bucket.
- Those figures don't include private loans, but that affects only 3% of Utah graduates.
The big picture: Young Utahns stand to benefit in particular — as many put off buying homes amid worsening wealth inequality — since debt cancellation now allows them to avoid years of interest.
- Utah borrowers under age 34 had about $23,000 of federal student debt on average.
- By contrast, Utah borrowers aged 35–61 have about $45,000 in loans and interest to repay.