DeVry University Says I Owe an Educard Loan And I Can’t Get My Diploma. – Heather

“Dear Steve,

I attended Devry university online. I finished my degree program and had no outstanding debts. I went ahead and applied for graduation and bachelor courses. The next day I had a charge over $2,000. They said it was an educard loan. They wanted it all at one time. I told them I could only make monthly payments of $20 a month sure to I didn’t have a great job. They insisted when I talked on the phone I had to pay all at one time to get my diploma. I ended up getting notices via mail saying I owed the money and needed to pay all at once or set up monthly payments on their websites, which I did. I was making the monthly payments of $20. But I was still getting phone calls and letters saying If I didn’t pay the full amount they would turn out into the credit bureau and collections agency which they did.

Can I pay the university itself now that I have a better job to bypass the collections agency fees?

Can devry university turn a debt I was paying monthly payments on into the credit bureau?


Dear Heather,

I did a bit of research and it appears that the DeVry Educard plan is a line of credit that students have access to but once you terminate your course with the school it is converted to an installment plan.

Conversion to Installment Loan. You agree that, when you complete or otherwise terminate your course with the school, you will no longer have credit privileges under the Account. At that time, you agree to pay us the then outstanding balance in the Account, including all Finance Charges in twelve consecutive monthly installments or less in substantially equal amounts sufficient to pay the principal balance in full, together with finance charges accruing on the unpaid balance of such ac- count. If the minimum monthly payment indicated in paragraph 6 shall not serve to pay the outstand- ing balance, including finance charges, in a maximum of twelve monthly installments, your minimum monthly payment will be adjusted upward to the lowest minimum monthly payment which results in payment in full within twelve months. If the minimum monthly payment indicated in paragraph 6 shall serve to fully pay the outstanding balance, including all finance charges, in less than twelve monthly installments, we shall not be required to lower your minimum monthly payments. Your payments may vary over this twelve month (or less) period and we shall send you a monthly notice of the amount then due and owing. You have the right to prepay this amount in full at any time without penalty. We will provide you with a disclosure statement setting forth the material terms of this installment loan prior to your first payment becoming due under such terms. – Source

Do you disagree that you did have an Educard line of credit with DeVry or that the charge is valid? Were they not sending you monthly bills statements on this account?

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If you feel the debt is valid then it would be subject to the terms in the agreement for default.

If you are in default and we accelerate the loan balance to maturity, we may charge you collection costs incurred by us, including, without limitation, reasonable attorneys’ fees and court costs to the extent permitted by applicable law.

As long as you have an outstanding debt with the school, schools generally will withhold the diploma until all is paid.

It’s not clear from your question if the $20 monthly payments were acceptable to DeVry or that was all you could afford to pay. If the monthly payment was not an amount reached by mutual agreement then a token payment will not pull your account out of default.

The current owner of the debt can report the debt to the credit bureaus.

If you want to know who currently owns your Educard debt then the best thing to do is to check your credit report and see who is listing the debt. Alternatively you can contact Devry directly and ask them if you can make direct payment arrangements and if they still own the debt.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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