"When people are making important decisions about their education and their future, they should not be misled by deceptive employment and earnings claims," said FTC Chairwoman Edith Ramirez. "The FTC has secured compensation for the many students who were harmed, and I am pleased that DeVry is changing its practices."
The FTC's complaint charged that DeVry misled consumers in violation of the FTC Act by claiming that 90 percent of graduates actively seeking employment landed jobs in their field within six months of graduation. Advertisements making these claims appeared on television and radio, as well as online and in print and other media.
The complaint further alleges that DeVry misled students by claiming that graduates with bachelor's degrees, on average, had 15 percent higher incomes one year after graduation than the graduates with bachelor's degrees from all other colleges or universities.
The proposed federal court order requires DeVry to notify the students who will receive debt relief, and to inform the credit bureaus and collection agencies of the debt forgiveness. All loan and debt forgiveness will occur automatically. DeVry will also release transcripts and diplomas previously withheld from students because of outstanding debt and will cooperate with future requests for diplomas and transcripts and related enrollment or graduation information.
The settlement also includes provisions designed to prevent DeVry from misleading consumers in the future. Among other things, it prohibits DeVry from misrepresenting the likelihood that graduates will get a job as a result of their degree. It specifically prohibits DeVry from including jobs students obtained more than six months before graduating whenever DeVry advertises its graduates' success in finding jobs near graduation. The settlement also prohibits DeVry from misrepresenting the compensation or compensation ranges that students or graduates have received or can be expected to receive.
The FTC also has a new consumer blog that describes how the refund process was developed and implemented.
The FTC would like to thank the Department of Education and the Department of Veterans Affairs for their cooperation and collaboration.
For more information about the refund and debt forgiveness program, visit ftc.gov/devry or call 844-578-2645. Sign up to get email updates about the FTC's DeVry refund program.
The Commission vote approving the proposed stipulated order was 3-0. The FTC filed the proposed stipulated order in the U.S. District Court for the Central District of California.
NOTE: Stipulated orders have the force of law when approved and signed by the District Court judge.
CONTACT NUMBER FOR CONSUMER INQUIRIES: 844-578-2645.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/devry-university-agrees-to-100-million-settlement-with-ftc-300379253.html
SOURCE Federal Trade Commission