This is how much Arizonans owe

Corrections and Clarifications: A previous version included an incorrect number of Arizonans who owe student debt.

The Biden administration’s student loan repayment plan, Saving on Valuable Education, is facing a legal hurdle. Federal judges in Missouri and Kansas blocked parts of the program in separate rulings on Monday.

Though the decision does not cancel assistance already provided to borrowers, it does prevent the U.S. Department of Education from assisting other intended borrowers with loan repayment burdens moving forward under a rule set to go into effect July 1.

National student debt remains a key talking point on the campaign trail for the 2024 Presidential election. Both President Joe Biden and former President Donald Trump have taken steps to address the $1.75 trillion in student debt, the majority of which is made up of federal student loans.

According to the latest numbers from the U.S. Department of Education’s Federal Student Aid site, about 45 million Americans hold approximately $1.67 trillion in federal student debt. That includes more than 912,400 people in Arizona, who have $32.4 billion in debt as of March 31, 2024, reported by the government. The loans vary from Direct Loans to Federal Family Education Loans and Perkins Loans.

Nearly 500,000 Arizonans carry up to $20,000 in debt, 412,600 owe more than $20,000, and nearly 66,300 Arizonans owe more than $100,000.

To get a better understanding of the problem, here’s how that debt breaks down.

More:Who’s getting student loan forgiveness after $7.7 billion in relief? Here’s a breakdown

What is an income-driven repayment plan?

An income-driven repayment plan, or IDR, is a monthly payment that considers income and family size. Payments are based on a percentage of an individual’s discretionary income and can vary between 5 to 20% of discretionary income.

Federal Student Aid offers four different IDR plans:

Each plan uses a different formula to exact a borrower’s discretionary income. SAVE uses the difference between annual income and 225% of the poverty guideline for an individual’s family size and state of residence. Other guidelines can be found on the FSA website.

How much do Arizonans owe in federal student loan debt?

145,300 people owe under $5,000, for a total of $41 million
166,100 people owe between $5,000 and $10,000, for a total of $1.22 billion
188,300 people owe between $10,000 and $20,000, for a total of $2.72 billion
186,000 people owe between $20,000 and $40,000, for a total of $5.3 billion
84,600 people owe between $40,000 and $60,000, for a total of $4.16 billion
49,400 people owe between $60,000 and $80,000, for a total of $3.41 billion
26,300 people owe between $80,000 and $100,000, for a total of $2.34 billion
45,100 people owe between $100,000 and $200,000, for a total of $6.2 billion
21,200 people owe more than $200,000, for a total of $6.61 billion

What age groups in Arizona owe the most federal student debt?

24 years old or younger: 116,000 people owe $1.48 billion
From 25 to 34 years old: 302,400 people owe $9.34 billion
From 35 to 49 years old: 307,800 people owe $13.48 billion
From 50 to 61 years old: 131,300 people owe $5.77 billion
62 years old and older: 54,500 people owe $2.27 billion

More:Most student loan borrowers have delayed major life events due to debt, recent poll says

How much of Arizona’s student debt has been forgiven?

Public Service Loan Forgiveness:

15,340 borrowers
Outstanding balance: $1,115,000,000

Income-Driven Repayment and SAVE:

36,980 borrowers
Outstanding balance: $1,475,500,000

SAVE:

10,690 borrowers
Outstanding balance: $140,500,000

Income-Driven Repayment:

26,290 borrowers
Outstanding balance: $1,335,000,000

Have a question you need answered? Reach the reporter at rromeroruiz@gannett.com. Follow him on X, formerly Twitter @raphaeldelag.

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