Friday, December 16, 2016

DeVry Settles, Agrees to Use Real Statistics

DeVry has now settled its false-advertising case. [ ] The university had used made-up employment outcome statistics in advertising. It has agreed to use only real statistics in future advertising. In the settlement with the FTC, DeVry will pay $49 million in a penalty and forgive $51 million in outstanding tuition and student loans. The cost of the settlement is not much more than the $49 million penalty, since it would have had difficulty collecting on loans from its unemployed graduates. In sum, the story adds to evidence that the quality of education at for-profit colleges was never as good as people previously thought.