Boilermakers coach Danny Hope announced Beckford's dismissal following Wednesday's practice.
Hope had indefinitely suspended Beckford on Monday after he was arrested and charged with two counts of possession of paraphernalia and one count of possession of a synthetic drug stemming from an Aug. 20 incident.
Beckford has been arrested four times since June 2011. He was suspended for Purdue's bowl game in December and had his scholarship revoked, missing spring practice before being reinstated in May. Beckford ranked second on the team in tackles with 91 in 2011 and had been projected as Purdue's starting middle linebacker entering the 2012 season.