Figures released this week show that more than 1 in 10 New Mexicans are eligible to have some of their student loan debt forgiven.
According to the White House, 215,900 New Mexican borrowers are eligible for at least $10,000 in debt relief, not to mention a host of other changes designed to ease the pain of being a student borrower. That’s about 17% of all New Mexican adults.
Of those eligible, 159,000 are Pell Grant recipients, meaning they can get a $20,000 rebate on their student loan balance. This represents 74% of eligible recipients, making New Mexico tied with Arkansas for the second highest percentage of Pell Grant borrowers in the nation. Pell grants are awarded to low-income students. Mississippi has the highest percentage of Pell Grant recipients at 76%.
Biden to erase $10,000 in student loan debt for many borrowers
The White House on Tuesday announced the number of borrowers in each state who could benefit from the student debt relief program and encouraged those who are eligible to apply.
To qualify, annual household income must be less than $125,000 for individuals or $250,000 for married couples or heads of households.
Other reforms include changes to income-based repayment plans that reduce bills from 10% of monthly income to 5% and cancel loan balances under $12,000 after 10 years, not 20 years, from payments.
Application to receive debt relief is not yet available. But it should be early October. Borrowers who wish to be alerted to the application can register for this link.
See a map below showing how many people are eligible in each state.