The Real Story Behind Who Got Their Student Loans Forgiven—And What Changed For Them

Student loan forgiveness might have been all over the headlines, but the actual borrowers who benefited? Their stories have largely gone untold. That’s precisely why the Consumer Financial Protection Bureau stepped up to release groundbreaking research on the people whose student loans were partially or completely wiped away.

What the Data Reveals About Loan Forgiveness

Between late 2023 and early 2024, the CFPB conducted an extensive survey that finally gave us concrete answers. The numbers are striking: roughly 10% of all federal student loan borrowers have received debt relief on at least one loan. In total, approximately $175 billion in student debt has been canceled for nearly 5 million borrowers, with an average forgiveness amount hitting close to $38,000 per person.

But here’s what makes this meaningful—borrowers who received relief typically had median household incomes between $50,000 and $65,000, notably below the national median of just under $75,000. These weren’t high earners getting a handout; they were people genuinely struggling with the weight of education debt.

Who Actually Benefited From Forgiveness?

Interestingly, about one in four borrowers whose loans were forgiven never completed their degree. These individuals represent a particularly vulnerable group—saddled with debt but without the earning potential that comes with a diploma. Research shows that 45% of borrowers who drop out end up defaulting on their loans, making them the group most at risk of financial trouble.

The CFPB also identified demographic patterns: those receiving forgiveness were disproportionately female, Black, or over 30 years old. More than 60% of recipients reported using the relief to make significant life changes—buying homes, starting families, increasing savings, or planning retirement.

The Real-World Impact Beyond the Numbers

Perhaps most revealing: the survey exposed the depth of financial stress among borrowers. A staggering 63% reported struggling to make payments, even before receiving forgiveness. Nearly a third (30%) went without food, medicine, or basic necessities because of their student debt. For many, were my student loans forgiven became more than a financial question—it was a matter of survival.

The study confirmed what many suspected: student debt doesn’t just hurt your wallet. Borrowers consistently delayed major life decisions—postponing home purchases, postponing starting families, hesitating to change jobs, and even putting off medical care.

What’s Next for Student Loan Forgiveness?

While broad forgiveness plans have repeatedly faced court challenges and setbacks, the Public Service Loan Forgiveness (PSLF) program remains active. Public-sector workers continue qualifying for relief through existing mechanisms, though the political landscape is shifting.

The administration’s most recent proposal could potentially help up to 8 million borrowers experiencing financial hardship, but its timeline remains uncertain as leadership transitions occur. What’s clear is that for the millions who’ve already received relief, the impact has been transformative—breathing room in their budgets and possibilities they thought were out of reach.