SPRINGFIELD, Ill. — If all direct federal student loan borrowers in Illinois fell under the Biden Administration’s income standards for debt forgiveness, nearly a third of them would have their student loan debt entirely erased.
It’s the latest we’re learning from the Illinois Student Assistance Commission.
ISAC doesn’t know how many Illinois borrowers will meet the income guidelines in the plan, but if all of them did over 70 percent of direct federal student loan holders would see 25 percent of their debt erased.
Spokeswoman Lynne Baker says about 1.5 million borrowers in Illinois hold more than $57 billion in direct student loans.
She certainly describes this week’s student loan forgiveness announcement from the White House as potentially very significant for Illinois borrowers.
On Wednesday, President Biden announced borrowers making under $125,000 per year will be eligible to have $10,000 of their student loan debt forgiven.
Those who were direct Pell grant recipients could see as much as $20,000 forgiven on their loans.
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