2M NYers Will See Total $16B In Student Loans Canceled: Schumer

NEW YORK CITY — More than 2 million New Yorkers could see at least some of their student loans disappear under a sweeping plan to forgive those debts, said Sen. Chuck Schumer.

Schumer, a native New Yorker and the Senate Majority Leader, gave a snapshot Sunday on how President Joe Biden's student loan forgiveness plan will affect the Empire State.

Altogether, $16.3 billion in student debt for 2.25 million New Yorkers will be canceled in the state, he said.

"The positive impacts of this move will be felt by families across New York and the nation, particularly in minority communities, and is the single most effective action that the President can take on his own to help working families and the economy, and today, we have an even sharper view at the numbers,” he said in a statement.

More than 1 million New Yorkers will have their student debts completely wiped away under the plan that will forgive up to $10,000 for borrowers who make less than $125,000 a year, according to Schumer's office.

Pell Grant recipients are also eligible for up to $20,000 of forgiveness — a move that Schumer said could greatly affect New York, given it ranks fourth in the nation for those low- and middle-income loans.

Schumer had called for up to $50,000 of student debt to be canceled for borrowers, but Biden opted for a much lower amount. The average student debt for a New York borrower is $38,400, according to Schumer's office.

Still, Schumer said the lower amount will translate into help for New Yorkers.

"Even more, over 2 million New Yorkers will see some relief, and it could not come soon enough, because this student debt burden has been exacerbated by a boondoggle system, unfair interest compounding and so much more," Schumer said in a statement.

Schumer called on federal loan servicers to prepare for a wave of calls from New Yorkers, and other Americans with questions about the cancelation, which is expected to begin in earnest late this year.