DeVry sues Education Department after it sought to recoup $23M in loan relief

Higher Ed Dive

Natalie Schwartz
October 11, 2022
Dive Brief: 
  • DeVry University, a for-profit college, filed a lawsuit Tuesday to stop the U.S. Department of Education from recouping tens of millions of dollars from the institution to finance loan discharges for past students.
  • In August, the Education Department notified DeVry that it intended to recoup more than $23 million to pay for discharged debt on behalf of 649 borrowers who previously attended the university. The former students filed claims under the borrower defense to repayment regulation, which allows debts to be forgiven for students defrauded by their college.
  • DeVry contends that the Education Department didn’t afford the university due process and skirted proper regulatory procedures. The lawsuit, filed in the U.S. District Court for the Northern District of Illinois, is asking a judge to rule that the department’s actions are unlawful, block the agency from recouping the sum from DeVry, and grant the university reasonable attorney’s fees and expenses.