For-Profit DeVry University Agrees to Cease Making False Claims About Graduate Job Placement

As the federal government continues to keep for-profit universities in its sights, word comes of a settlement between the Department of Education (ED) and one of the most recognizable names in the for-profit college business, DeVry University, in which DeVry will agree to cease making a long-standing claim about the job placement rate of its graduates.

DeVry has famously advertised that, since 1975, 90 percent of the school’s graduates find work in their degree fields within six months of graduation. However, when the school was asked last year by ED to substantiate they claim, it was unable to do so.

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In reporting by Business Insider, the feds also took DeVry to task for claiming that employed students were working in their academic fields when they clearly were not; cited examples of this include a business administration graduate working as a restaurant server, as well as a graduate with a degree in technical management working as a mail carrier; per DeVry’s website, the “Technical Management degree program is designed to prepare students to meet the challenges of a high-tech, global marketplace.” 

Beyond the matter of cleaning up its marketing and advertising claims, the settlement requires DeVry to establish a reserve of $68 million to help ensure that the school can make good on any financial liabilities or hardships it is deemed to have caused; for example, the reserve money could be used as a source of refunds to students if DeVry closes up shop entirely.

The information contained here is for general information purposes only. The Financial Writer blog and Bob Yetman disclaim responsibility for any liability or loss incurred as a consequence of the use or application, either directly or indirectly, of any information presented herein. Nothing contained in this article, or any other article featured at this blog, should be construed as a solicitation or recommendation to engage in any financial transaction. You should seek the advice of a qualified professional before making any changes to your personal financial profile.

 

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