According to the FTC, DeVry violated the law by deceptively claiming that 90% of its grads actively seeking employment landed jobs in their field within six months of graduation. The complaint also challenged as misleading DeVry’s representation that one year after graduation, its bachelor’s degree grads had, on average, incomes that were 15% higher than the incomes of bachelor’s degree grads from all other colleges and universities.
How will the $100 million settlement be distributed? DeVry will pay $49.4 million in cash to qualifying students who were harmed by the deceptive ads. The proposed order includes an additional $50.6 million in debt forgiveness. That figure represents the full balance owed on all unpaid private student loans issued to DeVry undergrads between September 2008 and September 2015 – $30.35 million – plus $20.25 million in student debt for things like tuition, books, and lab fees.