Earlier in July, the Biden administration announced that it will wipe out $39 billion in student loan debt held by more than 800,000 borrowers, and 10 states will see the most erased.
The administration said last year that it would make fixes to correct mistakes in tracking payments that qualify for forgiveness under income-driven repayment plans. Borrowers are eligible for debt forgiveness if they have made payments "equivalent of either 20 or 25 years of qualifying months."
The Education Department said eligible borrowers were being informed starting July 14 that their loans would be automatically discharged in the coming weeks.
"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said.
"By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans. This Administration will not stop fighting to level the playing field in higher education."
That announcement came after the hopes of those burdened by student debt were dealt a blow when the Supreme Court's conservative majority struck down President Joe Biden's $400 billion plan to cancel, or reduce, federal student loan debt for millions of Americans. He has since pledged to push ahead with a new debt relief plan, but legal experts say that could also face hurdles.
Biden has said that more than 800,000 student loan borrowers will see $39 billion of their loans discharged because of steps his administration took to "fix failures of the past."
"I have long said that college should be a ticket to the middle class – not a burden that weighs down on families for decades," the president said in a statement. "My Administration is delivering on that commitment."
The Education Department has released a breakdown showing the amount that is eligible to be discharged in each state and territory.
Topping the list are Texas and Florida—more than $3 billion in debt is eligible to be discharged in each. Both states went for Biden's opponent, former president Donald Trump, in 2020. Ohio and North Carolina, which were also carried by Trump in 2020, are also among the states where the most debt is being discharged.
Below, Newsweek has rounded up the 10 states where the most debt is being wiped out:
- TEXAS: 63,730 borrowers, $3,091.80 million
- FLORIDA: 56,930 borrowers, $3,036.80 million
- CALIFORNIA: 61,890 borrowers, $2,958.80 million
- GEORGIA: 38,590 borrowers, $2,130.40 million
- NEW YORK: 42,070 borrowers, $1,924.10 million
- OHIO: 37,070 borrowers, $1,736.90 million
- PENNSYLVANIA: 29,840 borrowers, $1,343.50 million
- ILLINOIS: 28,450 borrowers, $1,316 million
- MICHIGAN: 26,980 borrowers, $1,267.30 million
- NORTH CAROLINA: 24,870 borrowers, $1,135.10 million
