In October of 2021, the Biden Administration announced that it was introducing a special waiver to increase the number of federal student loan borrowers eligible for Public Service Loan Forgiveness (PSLF).
Under this PSLF waiver, 38,000 borrowers have received loan forgiveness. But where are those borrowers located? Which states saw the greatest benefit, and is this just a first step toward additional student loan debt relief?
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To answer these questions, Student Loan Planner obtained the Department of Education’s annual PSLF data report and state population data from the US Census Bureau, based on 2020 Census information.
Let’s take a look at the numbers and see which states received the highest — and lowest — forgiveness amount under the PSLF waiver.
1. Top 5 states with the highest amount forgiven under the waiver 2. Bottom 5 states for the PSLF waiver 3. How much is the PSLF waiver in the grand scheme of things?
Top 5 states with the highest amount forgiven under the waiver
The states that saw the most benefit from the PSLF waiver include those across the political spectrum, and also areas with the highest and lowest cost of living. Washington, DC, the nation’s capital had the highest average amount forgiven with the PSLF, at $85,712 per borrower.
One interesting note is that a significantly higher number of Florida borrowers received forgiveness under this waiver compared to the other four states on the list. However, comparatively, Florida also has a much higher population.
Information on the amount of debt forgiven per state resident also offers insight into how forgiveness impacts different states based on their population. For example, Hawaii has about 1.5 million residents compared to about 643,000 residents of Vermont. As a result, Vermont’s per-resident benefit from the PSLF waiver is about twice that of Hawaii.
When looking at the data, though, we focused on the average amount each borrower received under the PSLF waiver. Here are the states that saw the highest average amount of student loan debt forgiven under the expanded PSLF waiver.
Hawaii
Average amount forgiven under PSLF waiver: $74,725
Number of borrowers who received PSLF benefit under waiver: 120
Percentage of total federal student loan balances forgiven in the state: 0.20%
Average amount of debt forgiven per state resident: $6.16
Vermont
Average amount forgiven under PSLF waiver: $74,355
Number of borrowers who received PSLF benefit under waiver: 110
Percentage of total federal student loan balances forgiven in the state: 0.28%
Average amount of debt forgiven per state resident: $12.72
Alaska
Average amount forgiven under PSLF waiver: $72,388
Number of borrowers who received PSLF benefit under waiver: 80
Percentage of total federal student loan balances forgiven in the state: 0.25%
Average amount of debt forgiven per state resident: $7.90
South Carolina
Average amount forgiven under PSLF waiver: $71,371
Number of borrowers who received PSLF benefit under waiver: 920
Percentage of total federal student loan balances forgiven in the state: 0.23%
Average amount of debt forgiven per state resident: $12.69
Florida
Average amount forgiven under PSLF waiver: $71,059
Number of borrowers who received PSLF benefit under waiver: 2,680
Percentage of total federal student loan balances forgiven in the state: 0.19%
Average amount of debt forgiven per state resident: $8.84
Unlike the five states that received the highest forgiveness benefit under the PSLF waiver, the bottom five states didn’t have the same type of demographic spread. These states generally considered as having a low cost of living, and their political makeup is more homogenous.
Here are the five states that received the lowest average amount of student loan debt forgiven under the PSLF waiver.
West Virginia
Average amount forgiven under PSLF waiver: $45,600
Number of borrowers who received PSLF benefit under waiver: 250
Percentage of total federal student loan balances forgiven in the state: 0.16%
Average amount of debt forgiven per state resident: $6.36
South Dakota
Average amount forgiven under PSLF waiver: $46,100
Number of borrowers who received PSLF benefit under waiver: 150
Percentage of total federal student loan balances forgiven in the state: 0.19%
Average amount of debt forgiven per state resident: $7.80
Montana
Average amount forgiven under PSLF waiver: $46,629
Number of borrowers who received PSLF benefit under waiver: 210
Percentage of total federal student loan balances forgiven in the state: 0.23%
Average amount of debt forgiven per state resident: $9.79
Wyoming
Average amount forgiven under PSLF waiver: $47,583
Number of borrowers who received PSLF benefit under waiver: 60
Percentage of total federal student loan balances forgiven in the state: 0.17%
Average amount of debt forgiven per state resident: $4.95
Iowa
Average amount forgiven under PSLF waiver: $49,915
Number of borrowers who received PSLF benefit under waiver: 480
Percentage of total federal student loan balances forgiven in the state: 0.17%
Average amount of debt forgiven per state resident: $7.51
How much is the PSLF waiver in the grand scheme of things?
Even though the PSLF waiver resulted in 38,540 borrowers receiving forgiveness amounting to about $2.4 billion, this barely puts a dent in the outstanding federal student loan debt. About 42 million Americans still owe more than $1.6 trillion in federal student loans, and the PSLF waiver doesn’t benefit eligible borrowers equally.
If you don’t qualify for student loan forgiveness, either due to your employer or because you have private student loans, it might make sense to consider other options, like consolidation or student loan refinancing. Borrowers who prefer additional guidance can reach out to a Student Loan Planner consultant who can help you chart your own repayment course to success.
Despite the PSLF benefit that borrowers across the country have received through the expanded waiver, there’s still much to be done.
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