One of the largest for-profit colleges must pay $68 million and stop advertising about the success of its students

Derry University settled a lawsuit with the Department of Education.
Derry University settled a lawsuit with the Department of Education.

DeVry University has agreed to stop advertising a claim about the success of its students that had been challenged by the federal government.

The Education Department announced a settlement with DeVry today after saying the for-profit college chain couldn’t support one of its marquee claims.

DeVry had advertised that 90 percent of its graduates since 1975 found employment in their field of study within six months of graduation. Last year, the department asked DeVry to provide evidence of the claim and found that it couldn’t.

Under the settlement, DeVry must stop advertising the claim and must pay the department $68 million.

It cited the DeVry claim that 90% of graduates land a job in their field within six months of graduation as deceptive.

The agency also said there were numerous instances where DeVry considered students to be working in their field when they were not. Their examples included a graduate who majored in business administration who was working as a waiter and a graduate who majored in technical management who was working as a rural mail carrier.

The lawsuit was another blow to the for-profit college industry, which has been mired in legal problems and fines over the past few years.

Similar allegations were levied against now-shuttered Corinthian Colleges in 2015. The Department of Education fined Heald College San Francisco, a subsidiary of Corinthians, $29,665,000 for misrepresenting the kinds of jobs its graduates could get.

DeVry said in a statement that it is pleased to resolve the case with the Department of education.

Source : One of the largest for-profit colleges must pay $68 million and stop advertising about the success of its students

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s