President Joe Biden’s plan to cancel $10,000 in federal student loan debt for Americans earning $125,000 or less per year was welcomed by many in Hawaii.

More than 122,000 in the islands owe money on their college educations, most of them with debt of $10,000 or more, according to the latest figures from the U.S. Department of Education.

Gov. David Ige called it “great news” for those with federal student loans, and U.S. Rep. Kai Kahele, D-Hawaii, described Biden’s move as “pivotal” toward unburdening student loan borrows and ensuring higher education remains accessible and affordable.

“The president’s relief plan will completely eliminate student loan debt for 20 million people,” Kahele said in a statement.

Hawaii borrowers hold $4.6 billion in federal student loan debt, according to federal education data, with nearly 84,000 borrowers owing $10,000 or more.

According to credit reporting company Experian, the average student loan balance in Hawaii in 2021 was $39,300 — up 3.2% from 2020.

WalletHub on Wednesday ranked Hawaii 40th out of 50 states in student loan indebtedness and 49th in the proportion of students with debt.

Looking at student debt as a percentage of income (adjusted for cost of living), WalletHub ranked Hawaii 50th, exceeded only by the District of Columbia, while the state was last in percentage of student loan balances past due or in default — three times the number in New York, the state with the lowest percentage of past due or defaulted student loan balances.

Biden’s plan cancels $20,000 of federal loans for Pell Grant recipients and $10,000 for non-Pell Grant borrowers making under $125,000 a year. The plan also extends the pandemic-­era pause on payments for all borrowers until Dec. 31.

U.S. Sen. Mazie Hirono applauded Biden’s action, calling it a good first step.

“But we need to do more to continue helping student loan borrowers and making college more affordable, including by doubling Pell Grants,” Hirono said in a social media post.

Not everyone praised Biden. Republican state Rep. Bob McDermott and Republican nominee for the U.S. Senate seat held by Brian Schatz, said he is against it even though it would help his wife, Utu, pay off student loans over $20,000.

“I don’t think it’s fair for the truck driver, the plumber, the ironworker or any construction worker to pay for my wife’s education. It’s just not right,” he said.

McDermott, who says he’s paid off $40,000 in student loans for himself, said his six sons didn’t go to college but they are productive members of society, working in the military and private sector.

“And they’re going to pay for some Ph.D. in philosophy or some other student who never moved out of his mom’s garage? That’s not right,” he said. “No one forced these people to take out their loans.”

McDermott said Biden’s action will pour gasoline on the inflation that is already hurting Americans trying to keep up with the rising costs of essential goods and services.

But Kahele said the debt cancellation will not only help close the racial wealth gap but lower monthly costs for Americans across the country.

“In addition, by ensuring that we cap repayment of undergraduate loans at 5%, this executive action will continue to ensure that everyday Americans are able to pay back their loans while still being able to invest in their futures,” Kahele said. “I applaud President Biden for continuing his commitment to strengthening our middle class and creating a more equitable America.”

Biden’s action was also embraced by Hawaii college officials.

“Any effort to try to make college more affordable is a positive,” said Greg Grauman, vice president of enrollment management at Hawaii Pacific University.

Debora Halbert, University of Hawaii vice president of academic strategy, called Biden’s action a move in the right direction.

In the long term, however, more needs to be done to shift the burden of higher education funding from the student back to the public sector — the way it was some 40 years ago.

“But for those saddled with student debt, this could make a huge difference for them,” Halbert said.

According to the UH Institutional Research, Analysis &Planning Office, the average total debt for four-year graduates in 2020-21 was $22,280. And some 42.5% of bachelor’s degree students graduated with debt.

Halbert said the university plans to ask the state Legislature to expand the Hawaii Promise Scholarship program to the state’s four-year campuses.

The program, established with legislative money starting in 2017, provides free in-state tuition for qualified UH community college students with financial needs, covering the financial needs not met by other forms of aid such as federal grants and scholarships from UH, employers and other private sources.

At HPU, the average student loan debt for graduates is about $23,000.

Grauman said the university lessens the impact of its higher “sticker price” tuition on Hawaii students through its Holomua Commitment program, which provides institutional aid to first-time, full-time freshmen and transfer students who are legal island residents. The program covers 100% of students’ unmet tuition beyond federal loans and grants.