Lori Meadows
DeVry University has been accused of misleading students by inflating its job placement rates and salary statistics in marketing materials. As a result of these allegations, the Federal Trade Commission (FTC) reached a settlement with DeVry in 2016, which included providing refunds and debt relief to affected students. The U.S. Department of Education has also approved the discharge of federal student loans for thousands of former DeVry University students through a legal provision known as borrower defense, which offers loan relief to defrauded borrowers. This has led to the erasure of millions of dollars in student loan debt for former DeVry University students, with more applications for loan discharge currently under review.
| Characteristics | Values |
|---|---|
| Amount of loan debt to be erased | $415 million |
| Number of borrowers | 16,000 |
| Number of former DeVry University students | 1,800 |
| Amount to be received by DeVry students | $71.7 million |
| Reason for loan discharge | DeVry University gave misleading information about job placement rates |
| Amount DeVry agreed to pay to the FTC | $49.4 million |
| Amount of debt relief | $50.6 million |
| Amount of debt relief for private student loans | $30.35 million |
| Amount of debt relief for other student debts | $20.25 million |
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What You'll Learn
DeVry University misled students about job placement rates
DeVry University, a for-profit university, has been accused of misleading students about its post-graduation employment rates and graduate incomes. In a 41-page lawsuit filed in California, former students claimed that DeVry manipulated data to present higher, more attractive statistics to prospective students. Specifically, the lawsuit alleges that DeVry falsely claimed that 90% of its graduates actively seeking employment found a job in their field within six months of graduation and that their salaries were typically 15% higher than graduates of similar four-year programs.
The plaintiffs and proposed class members relied on these alleged misrepresentations when deciding to enrol in the school and paid more in tuition than they otherwise would have. The lawsuit also claims that DeVry's graduate employment statistics are described as "abysmal" and have been estimated to be between 20% and 50% from 2008 to 2014. In reality, DeVry's actual job placement rate was around 58%. The Department found that more than half of the jobs included in the claimed 90% placement rate were held by students who obtained them before graduating from DeVry and often before they even enrolled. These jobs were not a result of a DeVry education, and their inclusion was contrary to the plain language of the 90% claim.
Furthermore, DeVry excluded from its calculation large numbers of graduates who were actively looking for work simply because they did not conduct their job search in the manner that the University's Career Services department preferred. DeVry also included graduates who continued with the same job they had when they enrolled, even if it was unrelated to their degree. DeVry's misleading claims have had significant consequences for its students, as illustrated by the story of Eynelys Garcia, who attended DeVry University from 2012 to 2014. Garcia was misled about the university's job placement services, which led her to drop out of her program. She is now part of a class action case, Sweet v. Cardona, which represents students who have faced delays or denials in decisions on their borrower defence applications.
As a result of DeVry's misleading practices, the U.S. Department of Education has forgiven $71.7 million in loans for students deceived by the university, with the Federal Trade Commission reaching a $100 million settlement. Additionally, nearly 1,800 former DeVry University students will receive relief through a legal provision known as borrower defence, which promises loan forgiveness for defrauded borrowers.
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DeVry University inflated salary statistics
DeVry University has been accused of inflating its job placement statistics and salary numbers in marketing materials to attract students. In 2016, the Federal Trade Commission (FTC) reached a $100 million settlement with DeVry after a federal investigation revealed the university's misleading marketing tactics. The university's inflated salary claims and exaggerated statements about graduates' success in finding employment influenced students' decisions to enrol.
The salary trajectory for professors at DeVry University ranges from $72,467 to $116,069 per year, with an average total pay of $102,160 when factoring in bonuses and additional compensation. This is 11% lower than the national average salary for professors, which stands at $114,111 per year.
Communications majors who earn their bachelor's degree from DeVry University in Illinois can expect a median salary of $47,622 per year. This figure is higher than the national median salary of $34,959 for all communications bachelor's degree recipients. However, it is worth noting that DeVry University - Illinois is not ranked on College Factual's Best Colleges and Universities for Communication & Media Studies list.
The average DeVry University salary varies across different positions. According to Glassdoor, the lowest-paying job is a Student Assistant role, with an estimated annual salary of $34,079. In contrast, the highest-paying position is Group President, with an estimated salary of $243,277 per year. Hourly pay rates at DeVry University range from approximately $16 per hour for a FWS Student Worker to $86 per hour for a St. Executive Advisor.
Indeed reports a broader range of salary estimates for DeVry University, with annual salaries ranging from approximately $45,801 for a Student Coordinator to $170,000 for a Director of Operations. The website also provides hourly pay estimates, with rates varying from $15.97 per hour for a Graphic Design Intern to $31.68 per hour for a Baggage Handler. It is important to note that these figures are approximations based on third-party submissions and may not reflect the actual salaries offered by DeVry University.
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DeVry University's settlement with the FTC
DeVry University agreed to a $100 million settlement with the Federal Trade Commission (FTC) in 2016. The settlement resolved a lawsuit filed by the FTC, which alleged that DeVry University and its parent company had misled prospective students with deceptive advertisements. Specifically, DeVry claimed that 90% of its graduates actively seeking employment found jobs in their field within six months of graduation and that its bachelor's degree graduates earned 15% more than graduates from other universities and colleges on average one year after graduation.
The settlement included a $49.4 million cash payment to qualifying students harmed by the misleading ads and $50.6 million in debt relief. DeVry also agreed to release transcripts and diplomas previously withheld from students due to outstanding debt. Additionally, the settlement included provisions to prevent DeVry from engaging in similar misleading practices in the future. Specifically, DeVry was prohibited from including jobs obtained by students more than six months before graduation in any advertising and from misrepresenting the compensation ranges of graduates.
The FTC's settlement with DeVry is part of a broader trend of lawsuits and actions against for-profit universities accused of misleading prospective students. The U.S. Department of Education forgave $71.7 million in federal student loans for students deceived by DeVry University, based on the FTC's prior action.
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DeVry University's loan forgiveness eligibility criteria
DeVry University, a for-profit college, was found to have made misleading claims about its job placement rates. The Federal Trade Commission (FTC) reached a settlement with DeVry in 2016, agreeing to provide refunds and debt relief to affected students. As a result, DeVry University students who enrolled between January 1, 2008, and October 1, 2015, may be eligible for loan forgiveness.
To be eligible for DeVry University's loan forgiveness, you must fulfill the following criteria:
- Enrollment: You must have been enrolled in a bachelor's or associate degree program at DeVry University between January 1, 2008, and October 1, 2015.
- Payment: You must have paid at least $5,000 towards your education at DeVry University, including cash, loans, or military benefits.
- Academic Progress: You must have completed at least one class credit.
- Previous Loan Forgiveness: You should not have received debt or loan forgiveness as part of this settlement previously.
If you meet the above criteria, you can apply for DeVry University loan forgiveness by completing a Borrower Defense Loan Discharge application. This application can be found at StudentAid.gov. It is important to note that decisions on these applications may be delayed due to a court injunction on borrower defense regulations. However, it is still recommended to file the application.
The eligibility for DeVry University loan forgiveness is specifically related to the misleading claims made by the university. DeVry University agreed to provide refunds and debt relief as part of the settlement with the FTC. The U.S. Department of Education also determined that the university violated the law and misled students, resulting in additional loan forgiveness for affected borrowers.
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DeVry University's refunds and debt relief
DeVry University has been accused of misleading students by providing deceptive information about job placement rates. As a result, the Federal Trade Commission (FTC) took enforcement action, leading to significant refunds and debt relief for affected students.
DeVry University Refunds and Debt Relief:
The FTC reached a settlement with DeVry University, resulting in refunds and debt relief for students who were harmed by deceptive advertising claims. DeVry agreed to pay $49.4 million to the FTC, providing partial refunds to students. Additionally, DeVry committed to providing $50.6 million in debt relief for those with private student loans and other outstanding debts related to their attendance at the university. The settlement included forgiveness for the full balance of private student loans, as well as other student debts such as tuition, books, and lab fees.
In June 2017, the FTC started mailing refund checks to eligible DeVry students. However, as of May 2024, there were still 5,942 uncashed checks. The FTC announced that it would resend these payments, instructing students to cash their checks within 90 days. It is important to note that students with federal student loans were not included in the FTC settlement.
Borrower Defense to Repayment:
The U.S. Department of Education announced the approval of forgiveness for DeVry borrowers through "borrower defense to repayment." This legal provision provides loan relief for defrauded borrowers who attended for-profit colleges. Nearly 1,800 former DeVry University students will receive approximately $71.7 million in full borrower defense discharges, as part of a larger $415 million debt erasure for almost 16,000 borrowers across multiple institutions.
To be eligible for DeVry University student loan forgiveness, borrowers must have been enrolled in a bachelor's or associate degree program between January 1, 2008, and October 1, 2015 (some sources state September 2008 to September 2015). They must have paid at least $5,000 in cash, loans, or military benefits and not received debt or loan forgiveness previously. Eligible borrowers can apply for a Borrower Defense Loan Discharge at StudentAid.gov to initiate the loan forgiveness process.
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Frequently asked questions
DeVry University was found to have misrepresented its job placement rates. The Federal Trade Commission (FTC) reached a $100 million settlement with DeVry, which included $49.4 million to be paid in cash to qualifying students who were harmed by the deceptive claims and $50.6 million in additional debt relief.
DeVry University students who were enrolled in an undergraduate (bachelor’s or associate degree) program between January 1, 2008, and October 1, 2015, paid at least $5,000 with cash, loans, or military benefits to attend the school, completed at least one class credit, and didn’t receive debt or loan forgiveness as part of DeVry’s settlement with the FTC.
Students who are eligible to receive private or federal student loan forgiveness related to attending DeVry need to complete a Borrower Defense Loan Discharge application. Students can start the process on the DOE website.
