DeVry University, a prominent for-profit institution, has faced numerous legal challenges over the years, primarily centered around allegations of deceptive advertising and misrepresentation of graduate outcomes. These issues have significant implications for former students seeking relief through the Borrower Defense to Repayment (BDR) program.
In 2016, the FTC charged DeVry with misleading advertising, alleging that the university falsely claimed 90% of its graduates secured jobs in their field within six months and that they earned 15% more than graduates from other institutions. DeVry agreed to a $100 million settlement, which included $49.4 million in cash payments to affected students and $50.6 million in debt relief.
A class-action lawsuit accused DeVry of inflating job placement statistics to attract students. The case resulted in a $44.95 million settlement for eligible students who enrolled between 2008 and 2016 and were misled by the university's employment claims.
The New York Attorney General's office found that DeVry exaggerated graduates' success in finding employment and made unsubstantiated claims about salary outcomes. DeVry agreed to pay $2.25 million in restitution and $500,000 in penalties.
New York State Attorney General & Inside Higher Ed
DeVry settled with the Massachusetts Attorney General for $455,000 over allegations of deceptive advertising related to job placement rates in its online programs.Veterans Education Success+1CityNews Ottawa+1
In February 2022, the U.S. Department of Education approved $415 million in borrower defense claims, including approximately $71.7 million for about 1,800 former DeVry students. The department found that DeVry had made "widespread substantial misrepresentations" about its job placement rates, falsely claiming that 90% of graduates found employment in their field within six months.
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Stoltmann Law Offices represented over 550 individuals in arbitration claims against DeVry, alleging fraud based on misrepresented graduate employment statistics. These cases resulted in a collective settlement of approximately $20.3 million.
Numerous student reviews highlight dissatisfaction with DeVry's programs, citing issues such as high tuition costs, inadequate educational quality, and poor job placement assistance.
• ConsumerAffairs DeVry Reviews
Students have reported outdated course materials and lackluster support, leading to challenges in securing employment post-graduation.
3. Personal Testimonies
Jonathan H., a former DeVry student, shared his experience of accruing over $250,000 in debt for a degree that did not lead to the promised career opportunities.
• Project on Predatory Student Lending Blog
Implications for Borrower Defense Claims
The documented legal actions and settlements against DeVry provide substantial evidence for former students to support borrower defense to repayment claims. If you attended DeVry and believe you were misled by the university's representations, you may be eligible for federal student loan forgiveness.
Action Steps:
• Borrower Defense Application
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