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DeVry University Will Give FTC $49.4 Million For Student Refunds
Updated May 9, 2017 6:43 AM
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(WASHINGTON) - DeVry University will pay the Federal Trade Commission $49.4 million to be used for partial refunds for tens of thousands of students as part of a settlement for deceptive advertising, the agency said this week.

Regina Holmes, of Talk Media News reports, DeVry and its parent company had agreed to a $100 million settlement last December to settle an FTC lawsuit over deceptive advertising with regard to students' employment and salary prospects upon graduation. The refund money is part of that settlement.

The FTC will use DeVry's records to identify students eligible for refunds and will contact students who were enrolled between Jan. 1, 2008 and Sept. 30, 2015. Former DeVry students whose address has changed since they were enrolled should call the FTC refund administrator at 844-578-2645 or go to FTC.gov/DeVry for more information.

The FTC plans to mail checks before the end of the summer.

In addition to the refunds, DeVry also is providing $50.6 million for debt relief to former students. The forgiven debt includes the full balance owed -- $30.35 million -- on all private unpaid student loans that DeVry issued to undergraduates between September 2008 and September 2015, plus $20.25 million in student debts for tuition, books and lab fees.

DeVry agreed to notify credit bureaus that the students' debts had been satisfied. The institution also will release transcripts and diplomas previously withheld because of students' outstanding debts.

Among other stipulations, the settlement prohibits DeVry from misrepresenting the likelihood that its graduates will get a job and misrepresenting the compensation that students can be expected to receive or that graduates have received.

"When people are making important decisions about their education and their future, they should not be misled by deceptive employment and earnings claims," FTC Chair Edith Ramirez said in a statement. "The FTC has secured compensation for the many students who were harmed, and I am pleased that DeVry is changing its practices."



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