DeVry University (DeVry Education Group Inc.) has agreed to pay $100 million to settle claims brought by the Federal Trade Commission (FTC) that DeVry falsely advertised the job prospects of its graduates. DeVry misrepresented, in advertisements on TV, radio, online and other media, that 90 percent of graduates actively seeking employment secured a job within six months of graduation. The target audience for the ads included former members of the military and high-school students.

The FTC also alleged that DeVry misled students in claiming that graduates had 15 percent higher incomes one year after graduation compared to individuals who held bachelor's degrees from other colleges and universities. In their false statistics, DeVry counted a significant number of graduates who were employed before enrolling at DeVry. In addition to the FTC action filed in the U.S. District Court for the Central District of California, ex-DeVry students had filed two separate lawsuits against DeVry on similar claims; both also resulted in a settlement.

The proposed court order requires that DeVry pay $49.4 million to be distributed to students hurt by the deceptive ads. DeVry is also required to forgive $20.2 million in student debts and $30.4 million in unpaid private student loans. DeVry is prohibited from misrepresenting their students’ employment statistics and salaries. DeVry is also required to notify students eligible for debt relief by e-mail and mail and to inform credit bureaus and collection agencies of the debt forgiveness. The debt and loan forgiveness will occur automatically. Finally, DeVry must release diplomas and transcripts withheld from students owing to outstanding debt.

Since 2011, the Obama administration has been cracking down on the U.S. for-profit college sector, including legal claims about false employment statistics and predatory financial practices. In October 2016, DeVry reached a settlement with the U.S. Department of Education to end promotion of unproven employment placement claims. Finally, in March 2016, the Department of Veterans Affairs suspended DeVry from its Principles of Excellence program due to allegations that DeVry misled students about job placement.