FTC sues for-profit DeVry University over job, earning claims

By Staff Writer | Jan 28, 2016 09:22 AM EST

The government is taking the operators of the for-profit DeVry University to court. It has been accusing the university of misleading the consumers about students' jobs and earnings prospects.

According to CTV NEWS,  the government is suing the operators of the for-profit DeVry University, alleging that they misled their clients about the students' job and earning claims. In the complaint, the Federal Trade Commission claimed that DeVry was deceptive. The university allegedly declared a 90 per cent of its graduates actively seeking employment landed jobs in their fields within six months of graduation.

The agency also stated that DeVry was misleading when it claimed its graduates had 15 per cent higher incomes one year after graduation on average than any other graduates of all other colleges or universities. And instead of landing jobs in their field of study, FTC Chairwoman Edith Ramirez claimed that some graduates found themselves working as delivery drivers or restaurant servers. She even added that up to 50,000 or more of the students may have been affected by the alleged wrongdoing, as reported by Yahoo! News.

In a statement issued by the DeVry Education Group, it said that the commission's allegations are"without a valid legal basis" and that the company "intends to vigorously contest" the complaint. But then the FTC is seeking a court order to stop DeVry from making its advertising claims, through different means like TV, radio and elsewhere.

Ramirez stated that the commission would ask for monetary assistance for those affected, but that it was too early to say how much money will be involved. "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," Ramirez said via ABC News.

And regarding the FTC lawsuit, the Education Department announced its own action against DeVry. Under Secretary Ted Mitchell, the department has informed DeVry that it must discontinue making certain claims about its post-graduation outcomes and that it must inform students that it cannot validate such claims  or risk losing federal student loan money if it fails to do so.

Meanwhile, DeVry, based in Downers Grove, Illinois, has more than 55 campuses across the country. Moreover, the university is still offering online or on-campus degree programs in business, technology and healthcare technology.

More Sections