DeVry University to Pay $100M to Settle FTC Charges
December 15th, 2016
DeVry University, a for-profit institution that the FTC alleged misled tens of thousands of students with deceptive job placement figures like the one above, has agreed to pay $100 million to settle the agency’s charges. Half of the funds will go directly to students in cash form while the other half will go toward student debt relief.
The FTC complaint took aim at how DeVry, which has more than 50 campuses in the U.S., counted a graduate as having found employment “in their field.” For example, DeVry considered a business administration major who was working as a waiter post-graduation as having a job in management.
The FTC also alleged that DeVry artificially inflated job placement rates by including graduates who were working in positions they held prior to enrolling at the school, as opposed to those they landed after graduating.
DeVry will also pay $2.25 million in consumer restitution to settle similar charges brought by the New York attorney general. Graduates in the state may be eligible to receive restitution under both settlements, according to a press release.
The U.S. Department of Education has also taken action against DeVry for its marketing practices regarding post-graduation employment figures.
Find more of our coverage on for-profit schools here.
This article was originally published on 1/27/16 and updated most recently on 1/31/17.