The U.S. Education Department stated in a press release that a total of $415 million in borrower defense to repayment discharges would be awarded to over 16,000 borrowers following the adoption of four new findings and the ongoing review of claims.
According to the Education Department, nearly 1,800 former students of DeVry University will receive about $71.7 million in complete borrower defense discharges after the university made widespread serious misrepresentations about its job placement rates.
The Education Department has granted the first borrower defense claims involving a currently operational college, and it intends to reclaim the costs of the discharges from DeVry.
The Department expects the number of claims related to DeVry to rise as it continues to assess pending petitions.
This guide will update you on the DeVry lawsuit and explore different options available.
Let’s begin.
The 2016 FTC Complaint
DeVry stated that 90% of its job-seeking graduates found employment in their industry within six months of graduation; it was misleading, according to an FTC complaint filed in 2016.
According to the FTC, DeVry falsely claimed that its graduates earned 15% more than those who graduated from all other institutions of higher learning one year after graduation.
On the heels of the FTC’s federal court judgment against DeVry, the U.S. Education Department issued a statement. As a result of the FTC’s order, DeVry received $50.6 million in debt relief and $49.4 million in FTC reimbursements.
As a result of DeVry’s alleged false advertising, the agency sent 173,000 refund cheques totaling over $49 million to students. In addition, other cheques totaling $9.4 million were mailed in 2019 to customers who had already received a refund from the FTC.
To submit a claim for student loan forgiveness, you must visit the Education Department’s Borrower Defense Loan informational page.
How To Apply For DeVry Loan Forgiveness
To be eligible for student loan forgiveness, you must submit a Free Application for Federal Student Aid (FAFSA) before you can request any relief. You can get a copy of this one-page form by visiting the website.
All of your institutions will be listed on the FAFSA application. As a student, you must complete a FAFSA for each institution you attended. This is the point at which things become more complex.
A separate admissions office will be established for each institution. To apply for financial aid at the institution of your choice, you must complete a FAFSA application. The school will either respond with a yes or no after considering your application.
The FAFSA is considered a success if you are accepted into the school of your choice.
There are several additional ways to reply to the FAFSA form for schools. If you apply to many institutions, you can expect to receive an email confirming receipt of your application.
It’s also possible to have schools submit your acceptance to a central site. If your application is turned down, the school will send you a formal letter outlining the reasons for your denial.
DeVry Lawsuit: Loan Forgiveness And Discharge
There is a chance for you to receive a full or partial return for your student loans. DeVry University will forgive your student loans following the settlement. There are two options for student loan forgiveness through DeVry University:
- Borrower Defense to Repayment
- The Federal Trade Commission settlement
Each student who qualifies for this loan will receive approximately a $300 refund from DeVry University following the FTC’s settlement. The $300 loan forgiveness partially covers your student loans, but there is still a chance to pay them off ultimately.
Where to File Borrower Defense to Repayment
The official U.S. government website is the only location where you can effectively submit your application to DeVry University.
If students submit their claim to a different third-party website or organization, they are only responsible for themselves. Therefore, you should refrain from doing this, especially if they charge you for their service.
It doesn’t matter if the amount is modest or enormous. These organizations are mostly student loan fraudsters attempting to exploit unwary borrowers.
Remember that you shouldn’t hesitate to contact us if you need assistance with your student loan debt. You can reach us by phone or email.
Final Thoughts
You can get your student loans forgiven through the DeVry lawsuit. However, that’s not the only way. So if the Borrower Defense to Repayment doesn’t work out, seek an expert’s opinion and find alternatives to pay off your massive debt.