RICHMOND, Va. (WRIC) – Later today, President Joe Biden is expected to announce plans to cancel a chunk of student loan debt.
The move would help students here in Virginia where the average student loan debt is the 4th highest in the United States.
Virginia Commonwealth University students who have finished their undergraduate degree have borrowed an average of $22,500. The announcement today could mean $10,000 of that could be forgiven.
Sources said President Biden’s new plan will forgive $10,000 of loans for those who make less than $125,000 a year. The plane also includes another payment freeze for about four months.
Virginia students have an average student loan debt of around $39,000. The average monthly price they’re paying towards their loans is about $215 if it was repaid over 10 years at a little over 5% interest rate.
The federal government has never before forgiven this much student loan debt per person.