Higher income households will receive slightly more cancellation dollars in President Joe Biden's student-loan debt forgiveness plan, though more lower income households will see their student loan debt erased entirely, according to the JPMorgan Chase Institute.
Under Biden's plan, $10,000 of federal student-loan debt will be waived for individuals earning less than $125,000 per year or for couples earning less than $250,000. An additional $10,000 will be waived for people falling under those income thresholds who have also received Pell Grants.
Republicans are saying Biden's plan serves the rich at the expense of the working class.
The White House, in return, has said the reforms would simplify loan repayment and deliver significant savings to low- and middle-income borrowers.
"A number of independent analyses — including from the Penn Wharton Budget Model and Goldman Sachs — have broadly agreed that our debt relief plan is targeted to lower- and middle-income people," a White House spokesman told the Wall Street Journal.
The JPMorgan report found that up to 34% of all debt is eligible to be canceled, or $549 billion out of $1.62 trillion in outstanding federal debt, and that higher income households would receive slightly more cancelation dollars.
The institute looked at total household income because the bank's data suggested a large majority of wealthier households with student-loan debt were dual filers, or someone who files a joint income tax return with their spouse.
Counting every borrower as a single individual would show more money going to lower-income brackets, though, it said.
JPMorgan found that Black borrowers would receive roughly $11,000 in cancelation while the average Hispanic and white households would receive $9,500 and $9,000, respectively.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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