Smart Chart: Who Benefits Most From President Biden’s Student Loan Forgiveness?
September 07, 2022
President Biden recently announced plans to forgive up to $20,000 in student loan debt for Pell Grant borrowers, and up to $10,000 for recipients of other types of federal student loans, for individuals earning less than $125,000 per year or joint tax filers with income of less than $250,000 per year.
Critics of the move have questioned both its legality, as they maintain only Congress has the power to change student loan repayment terms, and the distribution of the benefits. As the chart below shows, more than half of the benefits will go to households earning between $51,000-$141,000 per year.