Biden's Latest Student Loan Forgiveness: Who Qualifies and How Much?

The Biden administration has announced another round of student loan forgiveness, totaling $4.2 billion, which will benefit over 150,000 borrowers. This latest initiative builds on the administration's ongoing efforts to reduce the burden of student debt and hold bad actors accountable. Here's who qualifies for this relief and how much they can expect to have forgiven.



1. Borrowers defrauded by their schools
* Nearly 85,000 borrowers will have their federal student debt forgiven through the U.S. Department of Education's Borrower Defense Loan Discharge program.
* These borrowers attended schools that closed while they were enrolled or misled them or did not provide a quality education.
* The relief totals $1.15 billion for borrowers who attended schools owned by the Center for Excellence in Higher Education, including Independence University and California College San Diego, between January 1, 2006, and August 1, 2021.
* An additional $107 million will go to borrowers who attended any location of Drake College of Business between January 1, 2008, and July 31, 2015.
* Lastly, $1.4 million will be forgiven for 280 borrowers who enrolled in the Criminal Justice Program at Lincoln Technical Institute's campus in Lowell, Massachusetts, between 2010 and 2012, or the Somerville, Massachusetts, campus from 2010 to 2013.
2. Borrowers with total and permanent disabilities
* An additional 61,000 federal student loan borrowers with a "total and permanent" disability will receive $2.5 billion in debt erasure.
* Some borrowers were automatically approved for debt forgiveness through data matches with the U.S. Social Security Administration and the Department of Veteran Affairs, while others applied for the loan discharge.
3. Public service workers
* The Education Department also granted loan forgiveness to 6,100 borrowers under the Public Service Loan Forgiveness (PSLF) program, totaling $465 million.
* These borrowers work in public service jobs, such as teachers, nurses, firefighters, and other government or nonprofit employees, and have made 10 years of on-time payments on their loans while working in public service.

In total, this round of forgiveness will benefit over 150,000 borrowers, bringing the total number of Americans who have had their student debt canceled by the Biden administration to over 5 million. The relief for public service workers alone totals approximately $4.28 billion, which is more than three times larger in terms of the number of borrowers affected compared to the previous initiative announced on December 19, 2024.

The Biden administration's ongoing efforts to reduce the burden of student debt and hold bad actors accountable have had a significant impact on borrowers' lives. By providing debt relief to those who have been defrauded by their schools, have total and permanent disabilities, or work in public service, the administration is helping to create a more equitable and just society. As the administration continues to work towards its goal of making higher education a ticket to the middle class, not a barrier to opportunity, it is essential to stay informed about the latest developments in student loan forgiveness and take advantage of any available relief.