President Joe Biden has announced plans to cancel thousands of dollars-worth of student debt for millions of Americans at a time when nearly half a million Connecticut residents are carrying billions of dollars worth of student debt.
Connecticut student loan borrowers owe a combined $17.5 billion and the average student loan debt for Connecticut residents is "notably higher" than the national average, according to researchers at the Education Data Initiative.
Researchers found around 23% of the 497,700 student borrowers in the state owe between $20,000 and $40,000, while 2% owe more than $200,000.
According to the Biden announced on Wednesday, borrowers who earn less than $125,000 a year, or families that earn less than $250,000, would be eligible for $10,000 on loan forgiveness.
The federal government would cancel up to an additional $10,000 in federal loan debt for people who received Pell Grants, which are reserved for undergraduates with the most significant financial need, according to the Associated Press.
Biden is also extending a pause on federal student loan payments for what he called the “final time” through Dec. 31, 2022, the Associated Press reports, and current students would only be eligible for relief if their loans originated before July 1, 2022.
Connecticut Student Loan Debt By the Numbers
The following statistics are from the Education Data Initiative.
- $17.5 billion: The amount of student loan debt for Connecticut residents.
- $35,162: The average student loan debt.
- 497,700: Student borrowers who live in Connecticut
- 57.3%: Percent of borrowers under the age of 35.
- 13.8%: Percent of Connecticut residents carrying student loan debt.
- 13.8%: Percentage of the borrowers who owe less than $5,000.
- 23.2%: Percentage who owe $20,000 to $40,000 (average $28,052).
- 2.1%: Percentage who owe more than $200,000.
Help If You Are Having Trouble Paying Student Loan You Have
The Connecticut Department of Banking recommends that a borrower who is experiencing trouble with their student loan servicer ask to speak to a supervisor.
Then if you still need to, call the Connecticut Department of Banking at 860-240-8170 or File an Online Complaint.
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