Dec 16, 2016 09:13 AM EST By Emily Marks, UniversityHerald Reporter

DeVry University has agreed to pay $100 million as settlement. This is for its case with the Federal Trade Commission (FTC) alleging that the school deceived its students.

USA Today reported that DeVry University and its parent company have agreed to pay a $100 million settlement. The school was accused of misleading prospective students with its graduates' success rates and income.

In a statement, 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.

The second figure includes the full balance owed on all unpaid private student loans issued to DeVry University undergraduates between Sep. 2008 and Sep. 2015. The breakdown is $30.35 million plus $20.25 million in student debt for tuition, books and lab fees.

The FTC order also requires the school to directly notify the students who will be receiving debt forgiveness as well as inform credit bureaus and collection agencies regarding the arrangement. The university is also required to release the transcripts and diplomas that were withheld from students due to outstanding debt.

According to the New York Times, tens of thousands of students will benefit from the agreement. "When people are making important decisions about their education and their future, they should not be misled by deceptive employment and earnings claims," Edith Ramirezthe commission's chairwoman, said.

The publication added that DeVry University neither admitted nor denied the allegations. It was previously reported that the school has agreed to withdraw its misleading claims about its graduate employment rates and income levels through a settlement with the Department of Education.

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