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Feb 02, 2017 07:34 AM EST

DeVry University Agrees To $2.75 Million Settlement Over False Ads

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DeVry University will be paying $2.75 million as settlement for misleading students about its graduates' success rates. The settlement was confirmed on Tuesday. USA Today reported that the parent company of DeVry University has agreed to pay $2.75 million as settlement. This is for allegations that the for-profit college's advertisements overstated its students' success after graduation particularly in landing jobs and having higher incomes.

The New York Attorney General's office made the announcement on Tuesday. The latest settlement will give $2.25 million as restitution to graduates who enrolled in associate and bachelor's degree programs as well as online programs at the for-profit college's New York-based campuses between Jul. 2008 and Sep. 2015.

The company has neither denied nor admitted any liability. It is also required to pay $500,000 in penalties, fees and costs.

The latest settlement comes after DeVry University agreed to pay $100 million as settlement for its case with the Federal Trade Commission (FTC). The FTC revealed that DeVry University violated the law with its claim that 90 percent of its graduates, who are actively-seeking employment, were able to land jobs within six months of graduation.

Moreover, the school allegedly misled students when it said that its bachelor's degree graduates had an average income that was 15 percent higher than their peers from other colleges and universities one year after graduation. The $100 million settlement will be distributed with DeVry University paying $49.4 million in cash to the students who were affected by the deceptive ads. The other $50.6 million will be paid for debt forgiveness.

According to NY Daily News, New York Attorney General Eric Schneiderman said that the for-profit college used false claims to "lure in students who were simply seeking a college degree." He added that the settlement would provide "much-deserved restitution" to the students and would require DeVry to stop promoting itself through misleading claims.

It was revealed that the university falsely claimed that its graduates were working in their chosen fields. However, it was found that they did not.

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