The Biden administration's plan to provide student loan debt forgiveness will most benefit Americans who live in less affluent parts of the country — the South in particular, a report from the Federal Reserve Bank of New York said Tuesday, Reuters reported. The administration's plan "pushes more forgiveness dollars toward borrowers living in lower- and middle-income neighborhoods than borrowers living in higher-income communities," the New York Fed said in a post on the bank's website. If implemented, "the reduction in student debt prevalence and balances will create a substantial financial improvement for borrowers." The report noted that some 65% of government student loan borrowers live in neighborhoods with annual median household incomes below $83,000. The New York Fed said that regionally those in southern states — where Republican-led criticism of Biden's plan has often been the loudest — will see the biggest benefit from the debt forgiveness plan. The bank said that the president's proposal will cancel out just under half a trillion dollars in outstanding loans, eliminating outstanding balances for 40.5% of those who'd taken out federal loans, while eliminating nearly a third of all outstanding federal student loans.
