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DeVry sues the Department of Education after trying to recover $23 million in loan relief.

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Dive briefs:

  • DeVry University, a for-profit university, filed a lawsuit Tuesday to stop the U.S. Department of Education from recovering tens of millions of dollars from the institution to fund past student loan forgiveness.
  • In August, the Department of Education notified DeVry that it intends to collect more than $23 million to pay forgone debts on behalf of 649 former college-bound borrowers. The former student has filed a claim based on the borrower’s defense of the repayment rules that allow the university to forgive the student’s debt defrauded.
  • DeVry alleges that the Department of Education could not afford to give the college due process and circumvented proper regulatory process. It finds it illegal, prevents the agency from recovering the money from DeVry, and asks the judge to allow the university reasonable attorneys’ fees and expenses.

Dive briefs:

The lawsuit stems from advertising that DeVry made between 2008 and 2015. The Federal Trade Commission accused the university of misleading students about college jobs and salary results, leading DeVry to settle with his agency. $100 million in 2016These allegations also Tighter scrutiny from the education sector.

In February, nearly six years after the settlement, the Department of Education announced that it was revoking $71.7 million from a former DeVry student who defended the borrower.action marked for the first time The department has granted this type of relief to students attending institutions that are still open and continue to access federal financial aid.

The Department of Education has also announced that it will attempt to recover hospital discharge costs from DeVry. DeVry’s lawsuit says the request was based on an ad he made in August and stopped running in 2015.

DeVry claims the retrieval attempts are illegal. For one thing, according to the university, the department did not disclose whether it looked into the individual details of each case. There is no legal basis for the act,” he said.

“Due to the volume of claims, the Department of Justice cannot circumvent administrative rules or suspend due process,” the lawsuit asserts. “The Justice Department completely changed the process by not providing the information DeVry needed and asking DeVry to sort it out.”

The Ministry of Education did not immediately respond to a request for comment.

DeVry alleges the Department of Education violated regulations, including failing to notify the university of the borrower’s defense application. Government agencies say they need to provide basic information, such as student attendance and complaints against the university.

The university also questioned why the department is holding DeVry liable for claims from students who received funds from the 2016 settlement.

of statementDeVry warned that the department’s actions could quickly affect other universities.

“The Department’s attempts to withdraw funds from currently operating institutions, and the special regulatory approach to doing so, pose a risk that could seriously affect all institutions participating in federal student assistance programs. It will set a strong precedent,” it said.