Students who attended DeVry University between 2008 and 2015 may be entitled to federal and private student loan forgiveness. During that time period, the school made deceptive claims, according to the Federal Trade Commission (FTC), which brought a lawsuit against the school.
Read on to learn about the options regarding DeVry University student loan forgiveness, including who’s eligible and how to apply for loan cancellation.
Key Points
• Students who enrolled in DeVry University between January 1, 2008, and October 1, 2015, may be eligible for federal student loan forgiveness because of misleading claims the university was found to have made.
• Those eligible must have paid at least $5,000 via cash, loans, or military benefits and completed at least one class credit, among other requirements.
• To apply, complete a Borrower Defense Loan Discharge application at StudentAid.gov.
• Decisions are currently not being made on applications due to a court injunction on borrower defense regulations.
• Filing the application is still recommended despite the delay.
Background on DeVry University Settlement
DeVry University, a for-profit college with locations in 11 states, offers online and in-person courses in various areas of business, health care and technology, with undergraduate and graduate degree programs and certificate programs for students.
Between 2008 and 2015, DeVry advertised a 90% employment success rate and 15% higher income levels for students after graduation. The FTC alleged that those claims were deceptive, and in January 2016, the agency brought a lawsuit against DeVry for $100 million dollars.
In December of that year, DeVry settled with the FTC, agreeing to a $100 million settlement. Under the settlement terms, DeVry was ordered to pay qualifying students who attended their schools between September 2008 and September 2015 and were harmed by the deceptive ads.
As part of the DeVry University student loan forgiveness, DeVry agreed to pay $49.4 million to the FTC to be distributed to students for partial refunds, and provide $50.6 million in debt relief for those who took out private student loans and any other outstanding debts related to attending DeVry.
Types of Loan Forgiveness Available
As part of the FTC settlement terms, DeVry agreed to forgive student loan debt that included the full balance owed on all private student loans ($30.35 million) and any other student debts such as tuition, books, and lab fees ($20.25 million).
In June 2017, The FTC began mailing refund checks to the eligible DeVry students. However, in May 2024, the FTC reported there were 5,942 checks that had not been cashed. As a result, the FTC announced it was resending those payments, and instructed students to cash their check within 90 days.
Students who took out federal student loans to attend DeVry were not part of the FTC settlement. In February 2022, the U.S. Department of Education (DOE) announced it would forgive $71.7 million in federal student loan debt through borrower defense to repayment regulation, holding DeVry liable for $24 million.
That means if you took out federal loans to attend DeVry, you could apply for federal loan forgiveness.
However, DeVry challenged the DOE’s decision. In 2023, a court issued an injunction delaying the effective date of the DOE’s borrower defense regulation until there is a final judgment on it. As of mid-January 2025, the injunction is still in place. On January 10, the Supreme Court agreed to review the case, though no date for the review has been announced. In the meantime, borrowers may still apply online for borrower defense relief.
On January 16, 2025, the DOE announced they had approved forgiveness through borrower repayment to defense for 4,100 DeVry borrowers as part of the Biden administration’s final student loan debt relief approvals, though nothing can move forward while the injunction is in place.
Recommended: Who Pays for Student Loan Forgiveness?
Eligibility Criteria for Loan Forgiveness
Students who are eligible to receive private or federal student loan forgiveness related to attending DeVry need to fulfill all of the following criteria:
• Enrollment in a bachelor’s or associate degree program at DeVry University between January 1, 2008 and October 1, 2015
• Paid at least $5,000 in cash, loans, or military benefits
• Did not get debt or loan forgiveness as part of this settlement
• Completed at least one class credit
How to Apply for DeVry Loan Forgiveness
If you meet the criteria above, you’ll need to complete a Borrower Defense Loan Discharge application to start the process of having your DeVry federal student loans forgiven. As noted, while the injunction is in place, individuals can continue to file applications.
Under the law, to be eligible for borrower defense, your school must have engaged in misleading activities or other misconduct directly related to the loan or to the educational services for which the loan was given. If you attended DeVry during the specified time period and took out a federal student loan, you may qualify for a student loan discharge.
When applying for borrower defense repayment, be sure to have the following information:
• Verified account username and password (FSA ID)
• School name(s) and program of study
• Your enrollment dates
• Documentation to support why you believe you qualify for borrower defense and to demonstrate the harm you suffered
Alternative Debt Relief Options
Besides DeVry student loan forgiveness, there are some other options for getting out of student loan debt and managing student loan payments that you can explore.
Income-Driven Repayment Plans
If you have federal student loans, you may want to consider income-driven repayment (IDR). These plans base your federal student loan payments on your discretionary income and family size. This typically results in a lower monthly loan payment. There are several different IDR plans to choose from.
Under an IDR plan, you could qualify for forgiveness of your remaining debt after 20 or 25 years.
Public Student Loan Forgiveness
If you work full-time in public service for a qualifying employer like the government or a nonprofit organization, you may be eligible for Public Service Loan Forgiveness (PSLF). This program forgives the remaining balance on most Federal Direct loans.
Qualifying borrowers can get PSLF after making the equivalent of 120 qualifying monthly payments under an IDR plan or the Standard Repayment Plan.
State Loan Repayment Programs
Some states help pay off student loans through state loan repayment assistance programs (LRAPs). These programs can assist borrowers with both private and federal student loans, depending on the program. Check with your state’s department of education to see what opportunities are available.
Student Loan Refinancing
When you refinance student loans, you replace your old loans with a new private loan, ideally one that has a lower interest rate and more favorable terms, which could lower your monthly payments.
Borrowers interested in refinancing student loans to save money should compare lenders and offers to choose the best one. But be aware that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment.
A student loan refinancing calculator can help you decide whether refinancing makes sense for your situation.
Impact of Forgiveness on Credit and Taxes
Student loan forgiveness may affect your credit in surprising ways. For instance, having DeVry student loan debt forgiven could cause your credit score to dip temporarily.
One reason for this is that if you wipe out student loan debt, you’re no longer building a payment history for it. And a history of repayment makes up 35% of your credit score, according to FICO, the credit scoring company.
In addition, eliminating student loan debt can impact the mix of credit you have. Lenders like to see a diverse mix of credit because it shows you can responsibly manage different types of credit accounts.
On the other hand, not having a monthly student loan payment improves your debt-to-income ratio, which creditors view as a positive. Plus, you can use the extra money for other expenses or to build up your savings.
Forgiveness may also have some tax implications. The IRS generally requires that you report forgiven or canceled debt as income. However, thanks to a provision in the American Rescue Plan, if your federal or private student loans are dismissed between December 31, 2020 and January 1, 2026, those forgiven student loans won’t be taxed by the federal government.
You may need to pay state taxes on forgiven student loans, however, so it’s a good idea to consult a tax professional or contact your state’s tax department to find out.
The Takeaway
If you attended DeVry University between September 2008 and September 2015, you may be eligible for federal student loan forgiveness through “borrower defense to repayment.” You can start the process of getting your DeVry student loan forgiven by applying for a borrower defense loan discharge at StudentAid.gov.
Borrowers who are not eligible for DeVry forgiveness can explore alternative debt relief options such as income-driven repayment, state loan repayment assistance programs, Public Service Loan Forgiveness, and student loan refinancing.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
Who is eligible for DeVry University loan forgiveness?
DeVry University students who were enrolled in an undergraduate (bachelor’s or associate degree) program between January 1, 2008 and October 1, 2015, paid at least $5,000 with cash, loans or military benefits to attend the school, completed at least one class credit, and didn’t receive debt or loan forgiveness as part of DeVry’s settlement with the FTC.
What types of loans qualify for forgiveness?
Through the federal government, borrower defense discharges apply to the following federal student loans: Direct Loans or those that can be consolidated into a Federal Direct Consolidation Loan. These discharges don’t apply to private student loans or loans that can’t be consolidated into a Federal Direct Consolidation Loan.
How long does the forgiveness process take?
Unfortunately, it might take a while. Because of a 2023 federal court injunction, no decisions may be made on applications until there is a final judgment on borrower defense regulations. The Supreme Court has agreed to review the case, though no date for the review has been given.
Will I owe taxes on forgiven DeVry loans?
Under the American Rescue Plan, federal or private student loans dismissed between December 31, 2020 and January 1, 2026, are not subject to federal taxes. However, you may have to pay state taxes on the forgiven loans, depending on the rules in your state. Consult a qualified tax professional for more information.
What if I’ve already paid off my DeVry loans?
If you have already paid off your DeVry loans, forgiveness through borrower defense is not an option. According to the Office of Federal Student Aid, in order to be eligible to apply for borrower defense, you must have at least one outstanding federal student loan associated with the school.
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