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How much would New Yorkers save if Biden cancels $10,000 in student loan debt per borrower this week?

This week President Joe Biden is expected to make an announcement about forgiving upwards of $10,000 in student loan debt for individual borrowers.

The moratorium on student loan payments from the coronavirus pandemic expires on August 31. Biden is not expected to extend it, but rather institute some sort of debt cancelation.

As far as college graduates are concerned, most of them are in debt. In fact, the latest data suggests that 54% of college graduates from New York carry student loan debt.

The average amount of that debt, per borrower, is about $31,000 making it the 16th most indebted state. The data shows that graduates with student loan debt are 36% less likely to buy a house, less likely to apply for car loans, and more likely to live with family members for a lengthy period of time.

For the average student loan borrower in New York with approximately $31,000 in student loan debt, monthly payments would be reduced by about $100 if Biden cancels $10,000 worth of student loans based on an average interest rate of 4.12%.