Wavebreakmedia Ltd/ThinkStock(LOS ANGELES) — For-profit college DeVry University and its parent company have agreed to settle a $100 million lawsuit from the Federal Trade Commission, it was announced Thursday. The suit alleged that DeVry ran misleading ads with inflated employment success rates and income levels among graduates.
DeVry’s advertisements, which had run online, in print and on television and radio, claimed that 90 percent of graduates actively seeking employment landed jobs in their field within six months of graduation.
They also claimed that graduates with bachelor’s degrees had 15 percent higher incomes one year after graduation than graduates from all other colleges or universities. The FTC’s complaint said these claims were misleading prospective students.
“When people are making important decisions about their education and their future, they should not be misled by deceptive employment and earnings claims,” said FTC Chairwoman Edith Ramirez. “The FTC has secured compensation for the many students who were harmed, and I am pleased that DeVry is changing its practices.”
DeVry will pay $49.4 million in cash to be distributed to qualifying students who were harmed by the deceptive ads, as well as $50.6 million in debt relief on outstanding student loans and fees.
The settlement also prevents DeVry from misleading prospective students in the future by clarifying what data can be included in future advertisements.
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