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Education Department Approves $415M in Borrower-Defense Claims

February 17, 2022

Nearly 16,000 borrowers will receive $415 million in borrower defense to repayment discharges following the approval of four new findings. This includes approximately 1,800 former DeVry University students, who will receive approximately $71.7 million in full borrower-defense discharges after the U.S. Department of Education determined that the institution made “widespread substantial misrepresentations” about its job-placement rates. These are the first approved borrower-defense claims associated with a currently operating institution, as opposed to institutions that have closed, and the department will seek to recoup the cost of the discharge.

A spokeswoman for DeVry said, “DeVry University is deeply committed to student success and has oriented our whole organization around helping people compete in a complex and changing labor market. As today’s announcement calls out, any student claims date back to advertising that was used between 2008 and 2015, predating DeVry’s establishment as an independent institution with a new board and leadership. Nonetheless, we do believe that the Department of Education mischaracterizes DeVry’s calculation and disclosure of graduate outcomes in certain advertising, and we do not agree with the conclusions they have reached.”

This round of discharges includes new findings related to Westwood College and the nursing program at ITT Technical Institute, as well as recent findings about the criminal justice programs at Minnesota School of Business/Globe University and another $284.5 million in discharges to over 11,900 students who attended institutions such as Corinthian Colleges and Marinello Schools of Beauty, whose applications were reviewed after earlier announcements of relief.

In total, the Education Department has provided loan relief through the program to 107,000 borrowers, for a total of $2 billion.

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Scott Jaschik

Scott Jaschik, Editor, is one of the three founders of Inside Higher Ed. With Doug Lederman, he leads the editorial operations of Inside Higher Ed, overseeing news content, opinion pieces, career advice, blogs and other features. Scott is a leading voice on higher education issues, quoted regularly in publications nationwide, and publishing articles on colleges in publications such as The New York Times, The Boston Globe, The Washington Post, Salon, and elsewhere. He has been a judge or screener for the National Magazine Awards, the Online Journalism Awards, the Folio Editorial Excellence Awards, and the Education Writers Association Awards. Scott served as a mentor in the community college fellowship program of the Hechinger Institute on Education and the Media, of Teachers College, Columbia University. He is a member of the board of the Education Writers Association. From 1999-2003, Scott was editor of The Chronicle of Higher Education. Scott grew up in Rochester, N.Y., and graduated from Cornell University in 1985. He lives in Washington.

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