DeVry University has requested a federal judge to temporarily prevent the U.S. Department of Education from recovering $23 million in discharged student loans.
The university previously settled with the Education Department and the Federal Trade Commission over allegations of misleading advertisements between 2008 and 2015. Under the borrower defense to repayment regulations, the Education Department can forgive loans for students who were misled by their colleges.
DeVry argues that it will suffer irreparable harm if the recoupment is not blocked.
The type of student loan forgiveness offered in this situation is different than the program recently blocked by the Supreme Court. Many borrowers who attended schools found to have defrauded students can have their loans forgiven. These schools are often for-profit institutions. Corinthian Colleges, Inc. and ITT Technical Institute are two examples of other institutions in a similar situation.