What is the average student debt of graduates from public and private universities in the United States?
The amount of student debt in the United States has been a problem for young Americans for years. In 2006, it was 461 billion dollars, which is not nothing, but it was a trillion dollars less than today. At the end of 2021, student debt was estimated at worth over $1.75 trillion. This impressive number prompted the federal government to act.
In terms of numbers per capita, the debt is scary. In 2021 the average student loan debt per borrower was $39,351, which means an average monthly payment of $393, according to recent statistics from EducationData.org. The median debt is $17,000 and 56% of people owe less than $20,000.
A total of 43.2 million people currently have a student loan and this number is only increasing every year. Worryingly, around 2.6 million graduates owe more than $100,000 in student loan debt alone.
In August, President Biden announced the details of the long-awaited decision student loan forgiveness initiative that he promised during his campaign for the 2020 elections. Although it does not go as far as many had expected, the program offers $10,000 in debt relief for borrowers whose individual income does not exceed $125,000 per year, or $250,000 for couples filing jointly. Borrowers who received a Pell grant while in college may receive a Additional $10,000 in debt forgiveness.
What are the latest developments for debt cancellation?
President Biden on Monday announced the official launch of his administration’s student loan relief pardon application. The beta version of the online form went live on Friday and borrowers flocked to submit their applications. Over 8 million Americans have already signed up to get their federal student loan forgiven during the online portal’s short trial period.
However, there is a looming battle in the Supreme Court over whether the support will continue. The Brown County Taxpayers’ Association in Wisconsin issued a challenge, and a number of Republican states tried to block the move.