It continues to deny all allegations of wrongdoing. His administration’s crackdown on the industry led to the collapse of Corinthian Colleges and ITT Technical Institute, both within the past two years. On Thursday, the school said it was “pleased” the matter was resolved. Those who still owe the school money, though not necessarily through a loan, may also have their debt wiped away. Other for-profit colleges have also faced increased scrutiny under President Obama. If you’re eligible, you will be notified by the FTC. The complaint alleged that DeVry’s TV, radio, online and print ads touted inflated job placement rates and post-grad income levels. Its revenue fell 3.5% last year to $1.8 billion, mostly due to a decline in enrollment. The money will go back to tens of thousands of students that attended DeVry between 2008 and 2015. The Department of Education found that the college could not substantiate that statistic, and has prohibited the school from making that claim. If you’re eligible for this kind of compensation, you will be notified by DeVry. A sign indentifies DeVry's Chicago campus on February 10, 2014 in Chicago. The school has 55 campuses across the country, and almost all of its degree programs are also offered online. For more information on the refund process, visit this FTC web page. 37.090240
-95.712891 Education Management Corporation, which owns the Art Institutes, agreed to forgive nearly $103 million worth of student debt last year. Some ads, for example, said that 90% of grads since 1975 found jobs in their fields of study within six months of graduation. (Credit: Scott Olson/Getty Images)
DeVry University Agrees to $100 Million Settlement Over Claims It Misled Students
A sign indentifies DeVry's Chicago campus on February 10, 2014 in Chicago. DeVry has about 70,000 students. The FTC brought its lawsuit nearly one year ago and at the time, DeVry said it would fight the allegations. The other half of the settlement money will wipe away outstanding debt for qualifying students and graduates who received a private loan from DeVry between September 2008 and September 2015 (the time period for which the ads ran). The agency is waiting to receive more information about the students from DeVry before it can determine how many will receive compensation. A federal judge still needs to approve the settlement, but this is how the monetary awards are expected to break down:
About half of the $100 million will be distributed to students who the FTC will determine were harmed by the ads. DeVry is not the first for-profit college that has agreed to forgive students’ debt in order to settle a lawsuit. This does not apply to anyone with federal loans. Some will be reimbursed with cash and others will receive debt relief. (Credit: Scott Olson/Getty Images)
DeVry University will pay $100 million to settle a lawsuit that alleged its ads misled prospective students, the Federal Trade Commission said Thursday.