You’ve probably seen the headlines or maybe a stray TikTok about people getting their entire DeVry balance wiped clean. It sounds like one of those "too good to be true" late-night infomercials, doesn't it? But for thousands of former students, it’s actually a reality.
The story of DeVry University student loan forgiveness isn't just one single event. It’s a messy, decade-long saga of lawsuits, government crackdowns, and a very specific program called "Borrower Defense to Repayment." If you spent years paying for a degree that didn't deliver on its promises, you aren't alone.
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The Big $100 Million Reality Check
Back in 2016, the Federal Trade Commission (FTC) basically hit the roof. They sued DeVry, alleging the school spent years lying to prospective students about how many graduates actually got jobs. Specifically, DeVry claimed that 90% of their grads landed jobs in their field within six months.
They also claimed their grads earned 15% more than people with degrees from other schools.
The FTC looked at the math and said, "Yeah, no."
They found that DeVry was counting people who were working at pizza shops or as delivery drivers as being "employed in their field." They also found that the income stats were, let's just say, highly optimistic. DeVry ended up settling for $100 million.
About half of that went toward debt relief for private loans. The other half was sent out as refund checks. If you had a private loan issued by DeVry between 2008 and 2015, there’s a good chance that debt was already auto-magically wiped out years ago. But what about the federal stuff? That’s where things get interesting in 2026.
How Borrower Defense Changes the Game
Most people don't have private loans; they have federal ones. This is where DeVry University student loan forgiveness gets complicated but also more hopeful.
There is a federal rule called Borrower Defense to Repayment. Basically, if your school lied to you or broke state laws to get you to enroll, you can ask the Department of Education to cancel your loans.
In February 2022, the Department of Education announced they were approving around $71.7 million in these claims specifically for former DeVry students. They pointed directly at those misleading "90% placement" ads.
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Wait. It’s not an automatic "everyone gets a check" situation.
You actually have to apply. And honestly, the government isn't always fast. As of early 2026, many of these applications are still being processed because of various legal challenges and injunctions in the court system. For example, a case called Career Colleges and Schools of Texas v. Department of Education has been bouncing through the Supreme Court, creating a bit of a "wait and see" atmosphere for new applicants.
Do You Actually Qualify?
Not everyone who ever stepped foot on a DeVry campus gets a free pass. The government generally looks for a few specific things:
- You attended during the window where the misleading ads were running (roughly 2008 to 2015).
- You can prove that you relied on those specific job placement or salary claims when you decided to enroll.
- You suffered "financial harm"—basically, you took out loans for a degree that didn't get you the career you were promised.
If you’re one of the "Sweet Class" members from the Sweet v. Cardona settlement, you might have already seen movement. That was a massive class-action lawsuit that included DeVry on a list of schools where the government basically admitted, "Yeah, these schools were problematic."
The Tax Catch (It’s Actually Good News)
Usually, when the government forgives a debt, they treat it like income. If someone gives you $30,000, the IRS wants their cut.
However, thanks to the American Rescue Plan, federal student loan forgiveness is currently exempt from federal taxes through the end of 2025. While we are now in 2026, many of the discharges that happened in the last couple of years are totally tax-free at the federal level.
State taxes are a different beast. Some states follow federal rules; others might still try to send you a bill. It’s worth checking with a local tax pro if you suddenly see a massive balance disappear from your account.
What You Should Do Right Now
If you’re sitting on DeVry debt and haven't done anything yet, don't just wait for a letter in the mail.
First, log into StudentAid.gov. You need to see exactly what kind of loans you have. Only "Direct Loans" are eligible for Borrower Defense. If you have older FFEL or Perkins loans, you might need to consolidate them into a new Direct Consolidation Loan first.
Second, get your evidence together. Did you save any old brochures? Do you have emails from recruiters promising you a high-paying job? Even if you don't, the Department of Education has already made "findings" against DeVry, which means they already acknowledge the school's advertising was deceptive during certain years. This makes your application much stronger.
Fill out the Borrower Defense application. It's long. It's tedious. But it is the only way to get your name in the hat for a discharge. Even with the current legal tug-of-war in the courts, having an application on file protects you. Often, while an application is pending, your loans can be put into "forbearance," meaning you don't have to make payments while they decide your fate.
Actionable Next Steps:
- Check your loan types on the Federal Student Aid website to ensure they are Direct Loans.
- Gather documentation of your enrollment dates and any promotional materials you remember seeing.
- Submit a Borrower Defense claim specifically citing the deceptive job placement statistics from the 2008-2015 era.
- Monitor your email for updates from the Department of Education regarding the Sweet v. Cardona settlement or any new group discharge announcements.