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According to the Federal Trade Commission, DeVry University used false advertising in their recruiting, which led students to believe they would be more likely to find a job with higher pay if they chose DeVry over another college.
Edith Ramirez, FTC Chairwoman, states, “Millions of Americans look to higher education for training that will lead to meaningful employment and good pay. Educational institutions like DeVry owe prospective students the truth about their graduates’ success finding employment in their field of study and the income they can earn.”
In the lawsuit, the Federal Trade Commission alleges that DeVry’s graduate job placement numbers of 90% within six months of graduation was misleading. The FTC also states that the higher income rate for the graduates was listed at 15% and was also deceitful. The advertising was done on television, radio, print and online.
DeVry was accused of counting graduates as working in their field, even though they were clearly not. Here are a few examples of this from the class of 2012:
1. A business administration graduate who specializes in health field management was working as a server in a restaurant.
2. Three technical management graduates were working as a delivery driver, mail carrier and an unpaid volunteer at a medical center.
3. A business administration graduate working as a car salesperson.
They also counted students as working even though they were in the same jobs from before they received their degree. It is alleged that DeVry counted graduates that were seeking employment as inactive, even though they were searching the databases and attending job fairs.
The U.S. Department of Education is notifying DeVry University that they need to cease advertising graduation job placement numbers until they can prove the numbers with complete accuracy.
Under Secretary of Education Ted Mitchell states, “As required by the law and expected by the public, institutions need to be accurate in their marketing and recruiting to prospective students. And we confirm this truthfulness of advertisements through the backup information schools provide upon request. The Department and the FTC’s related announcements today are the result of much collaboration and cooperation. We are grateful to our partners at the FTC for their hard work and dedication on this matter.”
The FTC is asking the courts to prevent DeVry from violating the FTC Act any further and to compensate former students.
If you have questions or comments, please chat in the comments below or on the ChallengeStudentDebt Twitter handle.
If you feel you were defrauded by the school you attended or you are being treated poorly as a distressed borrower by your creditors, take the free challenge debt review to find out what options you have regarding your student loans.