What Biden's loan forgiveness plan means for Minnesotans

Many Minnesotans may see their student loan balances drop under a new federal debt forgiveness plan.

Driving the news: The Biden administration announced Wednesday that it is canceling up to $20,000 in student debt for Pell Grant recipients and up to $10,000 for individual borrowers who make under $125,000 per year.

• The pause on repayments, which began during the pandemic, will be extended until Dec. 31.

By the numbers: It wasn't immediately clear how many state residents would see their balances drop under the proposal, given the various eligibility requirements.

• But government data shows roughly 781,600 Minnesotans had an open federal loan as of March, with the total debt hitting $26.7 billion.

Zoom in: Most of Minnesota's federal borrowers, who hold most of its loan debt, fall between the ages of 25 and 49.

Of note: The loan forgiveness only applies to federal student loans, not state or private debt.

Go Deeper: Biden cancels up to $20K in student loans for Pell Grant recipients, $10K for millions of others