Biden's Newest Spherical of Pupil Mortgage Forgiveness: Who Qualifies?

Students from schools that misled them

Nearly 85,000 people will have their federal student debt forgiven through the U.S. Department of Education's Borrower Defense Loan Discharge program. Individuals may be eligible for this option if their school was closed while they were enrolled or if they were misled by their school or did not receive a quality education.

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The Education Department said it approved the group dismissal of 73,600 students who attended schools owned by the Center for Excellence in Higher Education, including Independence University and California College San Diego. The $1.15 billion in debt relief will go to borrowers who attended these institutions between Jan. 1, 2006 and Aug. 1, 2021, the Education Department said.

An additional 11,000 borrowers will have their student debt forgiven if they attended any Drake College of Business location between Jan. 1, 2008, and July 31, 2015, when the school closed. This debt relief totals $107 million.

Finally, 280 borrowers who enrolled in the Criminal Justice Program at the Lincoln Technical Institute campus in Lowell, Massachusetts between 2010 and 2012 or at the Somerville, Massachusetts campus between 2010 and 2013 will have their federal student debt discharged. These borrowers will receive a total of $1.4 million in loan forgiveness.

Eligible borrowers who attended these facilities will automatically receive the assistance even if they did not apply for it, the department said.

Those who qualify should receive emails in the coming days.

Borrowers with disabilities

Another 61,000 federal student loan borrowers with a “total and permanent” disability will receive $2.5 billion in debt relief, the Education Department said Monday.

This round of relief includes some borrowers who were automatically approved for debt relief through data matching with the U.S. Social Security Administration and the Department of Veteran Affairs. Other borrowers applied for loan exemption.

Borrowers may be eligible for a Total and Permanent Disability (TPD) discharge if they have a mental or physical disability that is severe and permanent and prevents them from working. Proof of disability can be provided by a doctor, the Social Security Administration, or the Department of Veterans Affairs.

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The Department of Education also provided loan forgiveness totaling $465 million to 6,100 borrowers under the Public Service Loan Forgiveness (PSLF) program.

The program, signed into law by former President George W. Bush in 2007, allows government employees and certain nonprofit organizations to have federal student loans paid off after 10 years of on-time payments.

The Biden administration has sought to reverse the trend of borrowers being excluded from PSLF on technical grounds. It has expanded eligibility, allowing people to reapply for benefits as long as they work in the public sector and pay off their debts.

The PSLF Help Tool also allows borrowers to search for a list of qualified employers in the program and access the employer certification form. Go to studentaid.gov to learn more about all of the program's requirements.