Statistics show that students at for-profit colleges like DeVry are a LOT more likely to default on student loans than other college students. In fact, despite that only ten percent of all college students attend for-profit colleges, those students account for more than a third of all student loan defaults. Last year, the Department of Education released statistics that demonstrate that students at for-profit schools are the least likely to pay back any portion of their student loans. While 70% of students at public colleges paid at least $1 toward their student loans over a three year period, just 46% of for-profit college students paid anything toward their loan obligations. What Is The Reason For This High And Disproportionate Default Rate? The explanation is a predictable cycle that colleges like DeVry are well aware of: DeVry spent more than $100 million in three years to advertise on television, radio, YouTube, social media, and print to establish a…Read More
You are probably aware that DeVry reached a $100 Million settlement with the FTC last year because of their deceptive ads. In fact, you may have already received a portion of the $49.5 million that went to students who were harmed, or part of the $50.6 million allotted for debt relief and fee reimbursement. But did you know that even if you received FTC settlement money, you may still be entitled to additional money from DeVry? California Consumer Protection Laws You read that correctly. The reason that you may be owed money beyond the FTC settlement is this: (1) the FTC lawsuit was based on Federal laws; and (2) DeVry’s settlement with the federal government did not relieve the company of liability under the laws of California. In fact, the State of California has very strong consumer protection laws, including: Consumers Legal Remedies Act (CLRA). The intent of the CLRA is “to protect consumers against unfair and…Read More
Enacted in 1970, the Consumers Legal Remedies Act (CLRA) was designed with the purpose “to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection.” As the title and purpose suggest, this is an incredibly powerful tool that protects consumers and makes it unlawful for a business to make misrepresentations that result in a consumer purchasing a good or service. What Does The CLRA Cover? Virtually any misrepresentation by a business is covered, including bait-and-switch, fake goods, fake price reductions, solicitation, false advertisement, and more. There are twenty-three listed misrepresentations that have been deemed to be unlawful, including: Misrepresenting the affiliation, connection, or association with, or certification by, another. Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he or she does not…Read More
DeVry spent hundreds of millions of dollars aggressively advertising that 90% of its graduates found jobs within six months of graduation. They also advertised that DeVry graduates received higher salaries than graduates from other colleges. When investigated by the Department of Education and the FTC, DeVry could not back up its 90% claim. To make things worse, DeVry’s own statistics contradicted its claims of higher salaries. As a result of a Department of Education and FTC lawsuit, DeVry agreed to stop running these misleading advertisements and to pay $100 million to repay student loans, costs, and fees for students. Many students fell for DeVry’s claims and made enormous financial commitments to attend the college. They paid for expensive classes and fees. They also took out large student loans with the belief that they would be able to repay the loans using their higher salaries. One such student was Richard Green, who told his story to the…Read More
You might remember that the FTC sued DeVry, alleging “unfair or deceptive acts or practices in or affecting commerce.” It is hard to forget, since DeVry settled with the FTC for $100 million. Did you know that it wasn’t just the Federal government who had a problem with DeVry’s conduct? In fact, the state of New York also sued DeVry. New York’s Allegations Matched The FTC’s DeVry spent significant resources advertising that 90% of DeVry graduates found jobs in their chosen fields within six months of graduation. They also claimed that DeVry graduates made 15% more in salary than graduates from other colleges. With three DeVry colleges in New York, the state conducted its own investigation into DeVry’s claims and reached the following findings: When claiming that 90% of its graduates found jobs after graduation, DeVry improperly counted students who were already employed before attending Devry or before graduating. DeVry falsely stated that students were…Read More
During the end of President Obama’s administration, the financial outlook was bleak for the for-profit college sector. This is because of increased regulation by the Department of Education, which was attempting to curb false advertising and predatory lending by for-profit colleges and student loan companies. In fact, massive companies like ITT and Corinthian College went out of business, while University of Phoenix went private due to the increased regulatory climate and dwindling enrollment numbers.LONG BEACH, CA/USA - MARCH 19, 2016: DeVry University exterior and logo. DeVry University is a for-profit higher education organization. The future also seemed bleak for DeVry University, which had faced years of litigation regarding allegations of false advertising and a Federal lawsuit filed by the FTC. In fact, DeVry had just reached a $100 million settlement with the FTC and agreed to not engage in misleading advertising. The college, it seemed, was attempting to move forward into an unknown future. For-Profit…Read More
When the giant for-profit college ITT abruptly went out of business, thousands of students were left in the cold with worthless college credits and massive student loans that did not result in better job prospects. In addition, taxpayers were left having to pay off hundreds of millions of dollars in defaulted federal student loans. All of this has been a cautionary tale for prospective students looking to get ahead by going to college. One of the takeaways from the ITT debacle? Beware of aggressive college recruiters. As part of the ITT bankruptcy proceedings, a group of students filed an intervention, in which they attached hundreds of testimonials from former students and employees of ITT who had been deceived by ITT, or were disillusioned with the experience of having worked for ITT. Their identities were kept anonymous. The following are some powerful testimonials that illustrate that you should take a step back before falling for a…Read More
If you were a DeVry student in the last decade, you are probably already aware that DeVry engaged in a years-long practice of advertising promises that it could not keep. In fact, DeVry agreed last year to pay $100 million to settle a lawsuit filed by the Federal Trade Commission. It also agreed to stop its practice of advertising the false statistics that 90% of its graduates found jobs within six months of graduation and that DeVry graduates were paid higher than other graduates. FTC Refunds Of the $100 million settlement, $49.4 million has been allocated to provide refunds back to eligible students. In some good news for former DeVry students, the FTC has just announced that portions of these refunds are scheduled to be issued by the end of the summer. To be eligible, you must meet the following criteria: You were enrolled at DeVry between January 2008 and October 2015; You spent at…Read More
In January 2016, following a joint investigation with the Department of Education, the Federal Trade Commission (FTC) filed a Federal lawsuit in Ventura County against DeVry University. In the lawsuit, the FTC alleged that DeVry engaged in deceptive advertising when it repeatedly claimed that 90% of its graduates found jobs within six months of graduation and that a degree from DeVry earned its graduates 15% more income than degrees from other colleges. The lawsuit came to an end in December 2016, when DeVry and the FTC settled the claims for $100 Million. Under the terms of the agreement, DeVry will pay $49.5 million to qualifying students who were harmed by the ads. The remaining $50.6 million will go toward student debt relief: $30.35 million to all unpaid private loans issued to undergraduate students between September 2008 and September 2015, and the remaining $20.25 million to tuition and book fees. It is estimated that this settlement will provide some…Read More
Did you know that 90% of DeVry University graduates find jobs within six months of graduation? Spoilers: This statistic is probably false. Unfortunately, you aren’t alone if you believed this to be true. The reason you believe this is because DeVry spent $135 million per year in advertising between 2011 and 2014 to convince you. On January 27, 2016, the Federal Trade Commission filed a Federal lawsuit against DeVry Education Group in California. The government’s Complaint for Permanent Injunction and Other Equitable Relief, alleges that DeVry unlawfully violated the FTC Act by engaging in “unfair or deceptive acts or practices in or affecting commerce.” Specifically, the FTC alleged that DeVry deceived consumers when it advertised that: (1) 90% of graduates who were actively seeking employment found jobs within six months; and (2) DeVry bachelor’s degree holders earned 15% more income than average bachelor’s degree holders from other universities. With DeVry’s expensive, years-long advertising campaign, you may have seen…Read More
