For-profit settles with FTC for $100M

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DeVry University has agreed to settle a lawsuit with the Federal Trade Commission (FTC) for $100 million over allegations that the for-profit institution misled students about job and income prospects after graduating. 

The FTC filed a lawsuit in January against DeVry alleging that the company misled consumers by claiming:

  • A 90% placement rate within six months of graduating; and
  • Graduates had incomes 15% higher than those with bachelor's degrees from other institutions one year after graduating.

Under the agreement, DeVry must pay $49.4 million to students misled by deceptive advertising. The settlement includes $30.35 million for student loan forgiveness and $20.25 million for tuition, books, and lab fees.

The DeVry Education Group has denied any wrongdoing (Channick, Chicago Tribune, 12/16). 

For-profits could be able to turn themselves around by going the nonprofit route

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