We sorted through a few of the numerous claims about what President Joe Biden's student loan forgiveness plan will or won’t do — and who will be helped or hurt:
Claim: "Most benefits would go to households in the top 60% of earners."This is based on a dated estimate — and it’s not accurate under the existing Biden plan.that about 69% of debt relief in a plan similar to Biden’s would go to the top 60% of earners, or individuals making about $50,800 a year or more. However, it did not factor in the additional debt relief for certain Pell Grant recipients.
A graphic with the White House tweet said that the number is based on eligible borrowers who are out of school and by individual income. The Education Department told us it had to deduce the income of many borrowers, using Census data and statistical models. With any model, there’s going to be uncertainty. The Wharton analysis we mentioned above reaches a slightly different conclusion.The tweet said the 85% figure was from 2018 by "expanded cash income level .
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