President Joe Biden.
Irrfan Khan | Los Angeles Times | getty images
Students at a school that deceived themselves
Approximately 85,000 people will have their federal student loan debt forgiven through the U.S. Department of Education’s Borrower Defense Loan Forgiveness program. People whose school was closed while they were enrolled, who were misled by the school, or who did not receive a quality education may be eligible for this option.
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The Department of Education said it had approved mass discharges for 73,600 students attending schools owned by higher education centers, including Independence University and California College San Diego. The $1.15 billion in debt relief will go to borrowers who attended these institutions between January 1, 2006 and August 1, 2021, the Department of Education said.
Another 11,000 borrowers could have their student loans forgiven if they attended Drake College of Business between Jan. 1, 2008, and when the school closed on July 31, 2015. That debt forgiveness totals $107 million.
Finally, 280 borrowers enrolled in criminal justice programs at Lincoln Technical Institute’s campus in Lowell, Mass., from 2010 to 2012 or its Somerville, Mass., campus from 2010 to 2013 will have their federal student loan debt discharged. These borrowers will receive a total of $1.4 million in loan forgiveness.
Eligible borrowers who attended these institutions will automatically receive assistance even if they do not apply, the department said.
Those who qualify will start receiving emails in the coming days.
borrowers with disabilities
An additional 61,000 federal student loan borrowers with “total and permanent” disabilities will receive $2.5 billion in debt cancellation, the Education Department announced Monday.
The relief includes some borrowers who were automatically approved for debt forgiveness through data matching with the U.S. Social Security Administration and the Department of Veterans Affairs. Another borrower applied for loan release.
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Borrowers may be eligible for total and permanent disability (TPD) if they are unable to work due to a serious and permanent mental or physical impairment. Certification of disability can be obtained from your doctor, the Social Security Administration, or the Veterans Administration.
public official
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 in 2007 by former President George W. Bush, allows government employees and certain nonprofit organizations to have their federal student loans forgiven after 10 years of overdue payments.
The Biden administration has been trying to reverse the trend of borrowers being excluded from PSLF on a technicality. It expanded eligibility and allowed people to reapply for relief as long as they worked in the public sector and paid their debts.
The PSLF Help Tool also allows borrowers to search a list of eligible employers under the program and access the Employer Certification Form. Visit Studentaid.gov for all program requirements.
