An institution that commits substantial misrepresentations is not administratively capable and ED should not deem it “qualified” for Title IV participation. Loans made to students at schools that commit substantial misrepresentations should be eligible for borrower defense. ED fined Heald for violations of the prohibition on making substantial misrepresentations to students. The saga of Corinthian borrowers has already been discussed—but ED has made findings of substantial misrepresentation as to other schools.61 For example, in January 2016, ED issued a Notice of Intent to Limit to DeVry University. ED found that, starting in at least 2008 and continuing until at least 2015, DeVry’s advertising campaign (We Major in Careers)62 positioned DeVry as
helping its graduates achieve career success—claims that DeVry could not substantiate as truthful. Today, ED claims no final determination has been made by it, “an accreditor, or other entity that the school made misrepresentations or engaged in fraudulent conduct for which borrower defense relief may be granted.” It has
not granted a single application from a borrower who attended DeVry. Further, ED takes the position that settlements are not final determinations.63 ED,64 the New York Attorney General,65 and the FTC66 all reached settlements with DeVry concerning its misrepresentations. ED has not granted a single borrower defense application from a borrower who attended DeVry.