Biden Cancels $10K In Student Loans For Some: What NYC Needs To Know

NEW YORK CITY — Some New Yorkers with student loans could see thousands of dollars of debt forgiven under President Joe Biden's new plan announced Wednesday.

Biden confirmed the plan's broad strokes — which could affect hundreds of thousands of New Yorkers — in a tweet Wednesday and plans to release more details later that day.

"In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room," Biden said on Twitter. "I'll have more details this afternoon."

Pell Grant holders will see up to $20,000 forgiven and other eligible Americans with student loans can expect up to $10,000 waived, Biden said.

Borrowers who make less than $125,000 will be eligible, according to Biden's tweet.

A student loan pause will be extended one final time through Dec. 31, Biden announced.

The news will likely be welcome to the one in six New York City dwellers who have student loan debt, according to a city analysis.

Student loan holders in the city are more likely to be Black, younger than 45, experience material hardship and are more highly educated, the study found.

"More than half of student loan holders in New York City owed more than $20,000," the analysis states.

The analysis found about one in five New Yorkers surveyed at the time had been late in the past year, and one in eight were behind when researchers talked to them.

Senate Majority Leader Chuck Schumer, a New Yorker, has been a vocal advocate for canceling student loan debt — and at a level higher than the president considered.

"Let's fight and persist until we succeed in canceling $50,000 in student debt," Schumer previously said, according to a Business Insider report.

Schumer implored Biden on Tuesday, while the president was on vacation, to forgive as much debt as the administration can, the Associated Press reported.

Schumer argued that doing so was the right thing morally and economically, according to the report.

More than 43 million people have federal student debt, holding about $38,000 on average, according to federal data. Roughly a third of borrowers owe less than $10,000, and about half owe less than $20,000.

More information on the student debt forgiveness plan can be found here.

The Associated Press contributed to this report.