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$100M Fraud Settlement Agreed Between DeVry University and the Federal Trade Commission


This is a settlement for the For-Profit Education Fraud lawsuit.

Santa Clara, CA: A $100 million settlement has been reached between DeVry University and the Federal Trade Commission (FTC) over allegations of for-profit education fraud, specifically, that the for-profit university used false statistics about its graduates’ job placement rates in order to lure students and increase enrollment.

According to the terms of the deal, DeVry will pay $49.4 million, which will be distributed by the FTC, and forgive $30.4 million in student loans and $20.2 million owed by former students. DeVry also said it had agreed to change its practices to “maintain specific substantiation” about graduates’ outcomes.

The FTC filed the lawsuit against DeVry in January, claiming the for-profit school deliberately misled customers through advertising claims it made in print, radio, online and TV that 90 percent of its graduates landed jobs within six months of initiating a job search.

Additionally, the suit claimed DeVry misled students when it claimed that its bachelor’s degree graduates had 15 percent higher incomes a year after their studies ended than graduates of all other colleges and universities, the FTC stated.

The terms of the settlement now “prohibits DeVry from including jobs students obtained more than six months before graduating whenever DeVry advertises its graduates’ successes in finding jobs near graduation.”

Further, the settlement stipulates that DeVry must notify students who are receiving debt relief, as well as credit bureaus and collections agencies. DeVry has also agreed to release transcripts and diplomas that they had been withholding from students who had outstanding debt.

The case is Federal Trade Commission v. DeVry Education Group Inc. et al., case number 2:16-cv-00579, in the U.S. District Court for the Central District of California.

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Published on Dec-16-16


READER COMMENTS

Posted by

on
Devry representatives made many promises and told me that I didn't qualify for the degree I wanted and that another degree would be better and I can have my core classes for the field I want. Then enrolled me in their Master's program. They promised to help me gain employment and when it was time I was told no that they only have a job board and they could help me write a better resume. I didn't find my dream job until 2013, 5 years later after I graduated, without their help. I have mounds of student loans which I would of never took on if it wasn't for the promise.

Posted by

on
Devry should get the no profit education fraud for being dishonest.

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