Biden’s Education Department wants $24 million from a for-profit school accused of causing student debt to pile up for borrowers

Biden’s Education Department wants $24 million from a for-profit school accused of causing student debt to pile up for borrowers

President Joe Biden's Education Department just took the first step in holding a for-profit school liable for student-debt cancellation costs. On Tuesday, the department its second-largest approval of a group borrower defense claim — a claim a borrower can file for debt relief if they believe they were defrauded by a school — for former ITT Technical Institute students, totaling $3.9 billion in relief. While that was the main focus of the announcement, and welcome news for students who attended ITT between 2005 and 2016, the department also announced a $24 million recoupment action against DeVry University to cover the costs of approved borrower defense claims. In February, the department for 1,800 former DeVry students after it found that the school "repeatedly misled prospective students across the country" from 2008 through 2015 by misrepresenting job prospects, according to a . This recoupment effort concerns the first group of borrowers whose debt relief is currently in process with their loan companies, and the department said it expects the number of approved claims to grow and will continue to seek further recoupment efforts, if needed. A DeVry spokesperson said in a statement to Insider that they received the department's notice and are