DeVry University is a for-profit college that officially became an educational institution in 2002. The organization activates in Downers Gove, Illinois, and had to deal with much criticism for its core values that promote educational support in exchange for financial gains. However, its situation was thriving in popularity with more than 42,000 paying students populating their 55 campuses across North America. Things changed when a federal lawsuit has just ended with a settlement of $100 million because of false advertising.
This Thursday, the Federal Trade Commission announced that the DeVry University was found to falsely use the success of some of its graduates for advertising purposes. Both DeVry and DeVry Education Group, which is its parent company, have to cover the debt relief valued at $51 million and pay the students affected by their false advertising $49 million in cash. The F.T.C. stated that tens of thousands of undergraduates are about to receive a share of the settlement.
Edith Ramirez, the commission’s chairwoman, sees the issue of utmost importance. Any student has the right to make correct decisions regarding their academic future. When an institution makes false advertising to gain popularity, they harm a lot of people by misleading them. The choice of University is crucial for the intellectual development of young students, and the authorities will sanction such deceptive claims accordingly.
The lawsuit started in January. The main charge was the pretense of the DeVry University stating that 90% of its students who were actively looking for a job found a workplace in their field within six months. The secondary accusations focused on the school’s claims according to which its graduates earned 15% more that students from other educational institutions.
The debt relief that the DeVry University has to cover constitutes the amount of private loans students had to make to pay for their studies. The same school issued these loans over the course of seven years, starting in September 2008 and ending September 2015. The settlement also covers expenses students had to make for books, tuition, and lab fees.
The settlement also mentions clear directives that forbid the school from resuming their false advertisement ever again. The future students will no longer be misled by false claims whose sole purpose is to improve the image of the DeVry University.
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