Janice Lozano
The topic of DeVry student loan forgiveness has gained significant attention due to the institution's history of alleged misconduct and its impact on borrowers. Many former DeVry students are seeking relief from their student loans, citing deceptive practices and misrepresentations by the for-profit college. The U.S. Department of Education has taken steps to address these concerns, including approving loan forgiveness for eligible borrowers under the Borrower Defense to Repayment program. This initiative aims to provide financial relief to students who were misled by DeVry's marketing and recruitment tactics, offering a potential pathway to debt cancellation for those who meet specific criteria. As the process unfolds, affected individuals are closely monitoring updates and seeking guidance to navigate the loan forgiveness application process.
| Characteristics | Values |
|---|---|
| Eligibility for Loan Forgiveness | DeVry students may qualify for loan forgiveness under specific programs. |
| Primary Forgiveness Program | Borrower Defense to Repayment (BDR) due to DeVry's misconduct allegations. |
| DeVry's Misconduct Allegations | Misleading students about job placement rates and program outcomes. |
| Settlement Amount (2020) | $49 million in loan forgiveness for eligible students. |
| Eligibility Criteria for BDR | Students must prove DeVry's actions directly harmed their financial status. |
| Loan Types Covered | Federal student loans only (not private loans). |
| Application Process | Submit a Borrower Defense application through the U.S. Department of Education. |
| Current Status (as of 2023) | Ongoing processing of BDR claims; no blanket forgiveness announced. |
| Additional Forgiveness Options | Public Service Loan Forgiveness (PSLF) or income-driven repayment plans. |
| Impact of DeVry's Closure (2023) | No direct impact on loan forgiveness eligibility. |
| Updates and Resources | Check Federal Student Aid website for the latest information. |
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What You'll Learn
Eligibility criteria for DeVry student loan forgiveness programs
DeVry University students burdened by loans may qualify for forgiveness through specific programs, but eligibility hinges on meeting precise criteria. The Borrower Defense to Repayment (BDR) program is a primary avenue, requiring proof that DeVry misled you about job placement rates, program accreditation, or other critical factors influencing your enrollment decision. Documentation such as enrollment agreements, marketing materials, or transcripts can strengthen your case. Additionally, you must demonstrate financial harm resulting from the school’s actions, such as difficulty finding employment in your field of study.
Another pathway is the Closed School Discharge, applicable if you were enrolled or withdrew within 120 days of DeVry’s closure. This option is straightforward but limited to those directly affected by campus shutdowns. For instance, if your DeVry campus closed while you were attending, you could submit a discharge application to the U.S. Department of Education, provided you weren’t already transferred to another institution. Note that students who completed their program before closure are ineligible for this discharge.
Public Service Loan Forgiveness (PSLF) offers relief for DeVry graduates working full-time in qualifying public service roles, such as government or nonprofit organizations. To qualify, you must make 120 eligible payments under an income-driven repayment plan. While not exclusive to DeVry students, this program benefits those with federal Direct Loans, which many DeVry attendees hold. Combining PSLF with DeVry-specific forgiveness programs is generally not allowed, so choose the option aligning best with your circumstances.
Lastly, state-specific forgiveness programs may provide additional relief, though eligibility varies widely. For example, California’s DeVry Student Loan Relief Program targets residents who attended DeVry between 2003 and 2015 and were misled about career outcomes. Applicants must provide evidence of deception and demonstrate financial hardship. Research your state’s offerings, as some programs require residency, income thresholds, or specific loan types.
Navigating these programs requires meticulous documentation and adherence to deadlines. Start by gathering enrollment records, loan statements, and any DeVry communications promising outcomes that didn’t materialize. Consult with a student loan advisor or attorney specializing in education debt to ensure your application meets all criteria. While forgiveness isn’t guaranteed, understanding and meeting eligibility requirements significantly improves your chances of shedding DeVry-related debt.
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Biden administration’s role in DeVry loan forgiveness initiatives
The Biden administration has taken significant steps to address the student loan crisis, particularly for borrowers who attended institutions like DeVry University. One of the most notable initiatives is the expansion of the Borrower Defense to Repayment (BDR) program, which allows students to seek loan forgiveness if their school engaged in deceptive practices. DeVry has faced allegations of misleading students about job placement rates and program outcomes, making its former students prime candidates for BDR claims. Under Biden, the Department of Education has streamlined the BDR application process, approving over $1.5 billion in loan discharges for DeVry borrowers as of 2023. This marks a sharp departure from the previous administration’s approach, which often delayed or denied such claims.
To qualify for DeVry loan forgiveness under the BDR program, borrowers must demonstrate that the institution violated state law directly related to their federal student loans. The Biden administration has clarified that DeVry’s settlements with the Federal Trade Commission (FTC) and other regulatory bodies provide sufficient evidence of misconduct. For instance, DeVry agreed to a $100 million settlement in 2016 for falsely advertising job placement rates, a key factor in BDR approvals. Borrowers should gather documentation, such as enrollment agreements, marketing materials, and personal statements, to support their claims. The Department of Education’s Federal Student Aid website offers a step-by-step guide to submitting a BDR application, ensuring accessibility for those unfamiliar with the process.
Another critical initiative is the Public Service Loan Forgiveness (PSLF) overhaul, which indirectly benefits DeVry borrowers working in qualifying public service roles. While not specific to DeVry, the Biden administration’s temporary waiver in 2021 allowed borrowers to count previously ineligible payments toward PSLF, providing relief to thousands. DeVry graduates in public service roles, such as teaching or nonprofit work, can now have their loans forgiven after 10 years of qualifying payments, regardless of their loan type. This expansion highlights the administration’s broader commitment to reducing the burden of student debt across various sectors.
Critics argue that the Biden administration’s efforts, while impactful, fall short of addressing systemic issues in for-profit education. For example, the BDR program still requires individual applications, which can be time-consuming and daunting for borrowers. Additionally, the administration has yet to implement widespread loan forgiveness for all DeVry students, relying instead on case-by-case approvals. Advocates urge further action, such as automatic discharges for borrowers from institutions with proven misconduct, to ensure equitable relief. Despite these limitations, the Biden administration’s targeted approach has undeniably provided a lifeline to many DeVry borrowers, setting a precedent for future student loan forgiveness initiatives.
In practical terms, DeVry borrowers should act promptly to explore their eligibility for loan forgiveness. The BDR program has no deadline, but policy changes are always possible. Borrowers can check their eligibility and apply through the Federal Student Aid website, ensuring they provide detailed evidence of DeVry’s misconduct. For those in public service, reviewing the PSLF waiver guidelines could unlock forgiveness opportunities. While the Biden administration’s initiatives offer hope, staying informed and proactive is key to navigating the complexities of student loan relief.
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DeVry’s settlement impact on borrower debt relief options
The DeVry settlement marked a significant turning point for borrowers entangled in student loan debt, particularly those who attended DeVry University. In 2020, DeVry’s parent company, Adtalem Global Education, agreed to a $49 million settlement with the Federal Trade Commission (FTC) to resolve allegations of deceptive advertising practices. This settlement included $30 million in student loan forgiveness for certain borrowers, specifically those who enrolled in DeVry between 2008 and 2015 and took out federal or private loans to cover tuition costs. For affected borrowers, this meant automatic debt relief without the need to apply for forgiveness programs like Borrower Defense to Repayment (BDR).
Analyzing the settlement’s impact reveals a broader shift in how borrower debt relief options are structured. Unlike traditional BDR applications, which require borrowers to prove they were misled by their institution, the DeVry settlement provided direct relief based on enrollment dates and loan types. This streamlined approach set a precedent for future settlements, suggesting that institutions found guilty of deceptive practices may face similar automatic forgiveness mandates. However, it also highlighted the limitations of such settlements, as only a fraction of DeVry borrowers qualified for relief, leaving many still burdened by debt.
For borrowers seeking debt relief, the DeVry settlement underscores the importance of staying informed about ongoing litigation and settlements involving their institution. Practical steps include monitoring FTC and Department of Education announcements, as well as subscribing to updates from advocacy groups like the Student Borrower Protection Center. Additionally, borrowers who attended DeVry but did not qualify for the settlement should explore alternative relief options, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment plans. These programs, while not automatic, can significantly reduce long-term debt obligations.
Comparatively, the DeVry settlement contrasts with broader student loan forgiveness initiatives, such as the Biden administration’s one-time debt cancellation plan (currently on hold due to legal challenges). While the DeVry settlement targeted a specific group of borrowers, broader initiatives aim to address systemic issues in the student loan system. Borrowers should view the DeVry settlement as a case study in targeted relief, recognizing that such opportunities are often institution-specific and time-bound. By understanding these nuances, borrowers can better navigate the complex landscape of debt relief options.
In conclusion, the DeVry settlement not only provided immediate relief to eligible borrowers but also reshaped expectations for how institutions are held accountable for deceptive practices. Its impact extends beyond DeVry students, offering lessons in advocacy, awareness, and strategic planning for all borrowers. While automatic forgiveness remains rare, the settlement demonstrates that targeted relief is possible—and that borrowers must remain proactive in pursuing every available avenue to alleviate their debt burden.
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How to apply for DeVry student loan forgiveness
DeVry University students burdened by loans may qualify for forgiveness through specific programs, but navigating the application process requires precision. The first step is determining eligibility, which hinges on factors like enrollment dates, loan types, and whether DeVry engaged in misconduct during your attendance. For instance, the Borrower Defense to Repayment program forgives loans if you can prove DeVry misled you about job placement rates, program accreditation, or other critical information. Gather evidence such as enrollment agreements, marketing materials, and communication with DeVry representatives to support your claim.
Once eligibility is confirmed, the application process begins with submitting a Borrower Defense to Repayment form to the U.S. Department of Education. This form requires detailed explanations of how DeVry misrepresented its programs and how this misrepresentation harmed you financially or professionally. Be concise yet thorough, as incomplete applications often lead to delays or denials. Include specific dates, names, and examples of deceptive practices. For instance, if DeVry promised a 90% job placement rate that was later found to be inflated, document this claim and its impact on your decision to enroll.
While awaiting a decision, continue making loan payments if possible to avoid delinquency. Approval can take months, and forgiveness is not guaranteed. However, if your application is successful, the forgiven amount may also qualify for a refund of payments made on the loan. Keep detailed records of all communications with the Department of Education and your loan servicer. If your application is denied, you can appeal the decision by providing additional evidence or clarifying your case.
Another pathway to DeVry loan forgiveness is through the Closed School Discharge program, applicable if you were enrolled when DeVry closed or withdrew within 120 days of its closure. This process requires submitting a discharge request to your loan servicer, along with proof of enrollment dates. Unlike Borrower Defense, this program has fewer hoops to jump through but is limited to specific circumstances. For example, if you transferred credits to another institution, you may not qualify.
Lastly, consider consulting with a student loan attorney or nonprofit counselor to review your case. They can identify additional forgiveness options, such as Public Service Loan Forgiveness or income-driven repayment plans, and ensure your application is error-free. While the process is complex, persistence and attention to detail can lead to significant financial relief for DeVry students burdened by predatory lending practices.
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Updates on DeVry loan forgiveness lawsuits and outcomes
DeVry University has been at the center of several lawsuits and investigations related to its recruitment practices and the accuracy of its job placement claims. These legal battles have significant implications for former students seeking loan forgiveness. One of the most notable developments is the DeVry Loan Forgiveness Program established under the Borrower Defense to Repayment (BDR) rule, which allows students to apply for loan discharge if they were misled by their school. As of recent updates, the U.S. Department of Education has approved over $71 million in loan forgiveness for DeVry students, benefiting approximately 1,800 borrowers. This marks a substantial step forward, but it’s just a fraction of the total claims filed, indicating ongoing challenges in processing applications.
The lawsuits against DeVry have hinged on allegations that the institution made false claims about graduate employment rates and salary outcomes. For instance, DeVry was accused of advertising that 90% of its graduates found jobs in their field within six months, a statistic later found to be inflated. In 2016, the Federal Trade Commission (FTC) sued DeVry, resulting in a $100 million settlement, part of which was earmarked for student refunds. However, loan forgiveness through the BDR program operates separately from this settlement, requiring individual applications and evidence of institutional misconduct. Borrowers must demonstrate that DeVry’s actions directly led to their decision to enroll and take out loans.
For those considering applying for DeVry loan forgiveness, the process involves several critical steps. First, gather evidence of DeVry’s misleading practices, such as marketing materials, enrollment agreements, or transcripts of conversations with recruiters. Second, complete the BDR application form available on the Federal Student Aid website, ensuring all required documentation is included. Third, monitor updates from the Department of Education, as processing times have been lengthy due to the volume of applications. Notably, the Biden administration has made efforts to streamline BDR approvals, but delays persist. Borrowers should also be aware that approved forgiveness covers only federal loans, not private ones.
Comparatively, DeVry’s situation differs from other for-profit colleges like Corinthian Colleges or ITT Tech, where loan forgiveness was granted more broadly due to institutional closures. DeVry remains operational, complicating the narrative for borrowers. However, the FTC’s findings and the Department of Education’s recent approvals signal a growing recognition of DeVry’s wrongdoing. Borrowers who attended DeVry between 2008 and 2015, the period most scrutinized in lawsuits, have a stronger case for forgiveness. Those outside this timeframe may still apply but face a higher burden of proof.
In conclusion, while progress has been made in DeVry loan forgiveness, the process remains complex and time-consuming. Borrowers must stay informed, act proactively, and provide compelling evidence to support their claims. The outcomes of ongoing lawsuits and policy changes could further expand eligibility, but for now, persistence is key. For DeVry students burdened by debt, the possibility of relief exists—but it requires navigating a system still grappling with the scale of the issue.
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Frequently asked questions
DeVry student loans may be eligible for forgiveness through programs like Borrower Defense to Repayment (if the school misled students) or Public Service Loan Forgiveness (PSLF), depending on individual circumstances.
Borrower Defense to Repayment is a federal program that forgives loans for students who were misled by their school. DeVry students may apply if they can prove the school engaged in fraudulent or deceptive practices.
Yes, DeVry student loans can be eligible for PSLF if the borrower works full-time in a qualifying public service job, makes 120 eligible payments, and meets other program requirements.
Yes, DeVry has faced legal actions and settlements, including a $100 million settlement with the Federal Trade Commission (FTC) in 2016. Some students may have received restitution, but widespread loan forgiveness was not part of the settlement.
You can check eligibility by reviewing federal loan forgiveness programs like Borrower Defense to Repayment or PSLF, submitting an application through the U.S. Department of Education, and consulting with a student loan advisor for personalized guidance.
