HONOLULU (KHON2) — The White House on Tuesday released state-by-state data on how the Biden-Harris Administration’s plan for student debt relief will benefit borrowers. The plan includes providing up to $20,000 to Pell Grant recipients and up to $10,000 to other borrowers.
Over 40 million borrowers are expected to be eligible for this relief, according to the White House, and nearly half of them could see their entire remaining balance discharged. That includes Hawaii residents.
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The White House estimates 111,500 borrowers in Hawaii to be eligible for student debt relief. Approximately 65,700 Hawaii residents are estimated to be eligible Pell Grant borrowers.
Nearly 90% of relief dollars will go to those earning less than $75,000 per year, the White House announced, and no relief will go to anyone in the top 5% of incomes.
So, what kind of impact will it have on Hawaii’s economy? Dr. Carl Bonham, Executive Director of the University of Hawaii Economic Research Organization or UHERO, joined Wake Up 2Day to discuss the impact.
The Department of Education in the coming weeks will release additional details on the student debt relief plan. For more information, click here.