In a significant move to alleviate the financial burdens of student debt in the United States, the Biden administration has announced a new round of federal student loan forgiveness, amounting to approximately $4.2 billion. The U.S. Department of Education has approved group discharges for 73,600 students who attended institutions owned by the Center for Excellence in Higher Education. Through the Borrower Defense Loan Discharge program, nearly 85,000 individuals will see their federal student debt forgiven, marking a substantial effort by the administration to address student loan challenges.
Additionally, the Education Department has granted loan forgiveness to 6,100 borrowers under the Public Service Loan Forgiveness (PSLF) program, totaling $465 million. This initiative aims to reverse the trend of borrowers being excluded from PSLF due to technicalities. Furthermore, 280 borrowers enrolled in the Criminal Justice Program at Lincoln Technical Institute in Lowell, Massachusetts, will benefit from $1.4 million in loan forgiveness, as part of a broader strategy to rectify past grievances.
The relief package also includes debt cancellation for 11,000 individuals who attended Drake College of Business between January 1, 2008, and July 31, 2015. Meanwhile, more than 150,000 people stand to gain from these measures, which include assistance for those with "total and permanent" disabilities. Around 61,000 borrowers with severe and permanent disabilities will receive $2.5 billion in debt erasure through the Total and Permanent Disability (TPD) Discharge program.
Borrowers who qualify for TPD Discharge are those whose mental or physical disabilities prevent them from securing employment. Eligibility requires proof of disability from a certified doctor, the Social Security Administration, or the Department of Veterans Affairs. This initiative underscores the administration's commitment to supporting borrowers who face significant barriers due to their health conditions.
The $1.15 billion in debt forgiveness will benefit individuals who attended specific institutions between January 1, 2006, and August 1, 2021. This comprehensive approach aims to rectify past injustices where borrowers faced exclusion from relief programs due to technical requirements or institutional misconduct.
The Biden administration's efforts represent a proactive step towards easing the financial strain on individuals burdened by student loans. By targeting specific groups and circumstances that warrant forgiveness, the administration seeks to address systemic issues within the higher education financing framework. The Education Department's strategy reflects a nuanced understanding of various borrower categories and their unique challenges.