By Brittany Hackett, Communications Staff
The Department of Education (ED) and DeVry University on Thursday reached a settlement agreement regarding ED’s charge that the school used unsubstantiated job placement claims for recruitment and in advertising, further increasing ED’s oversight of the for-profit institution.
The charges levied by ED stem from an August 2015 request that DeVry provide data and other information to back up its claim that, since 1975, 90 percent of DeVry graduates were employed in their field of study within six months of completion. Federal Student Aid (FSA) found that the information provided by DeVry did not substantiate that claim.
Under the settlement agreement, DeVry University will immediately begin participating in the federal student aid programs through a provisional program participation agreement, which can last as long as five years. The institution has also been placed on Heightened Cash Monitoring.
DeVry’s continued participation in Title IV programs will also be contingent on its complying with additional requirements, which include:
“DeVry University is pleased to have resolved the Notice in full cooperation with the Department and continues to cooperate with the Department to resolve the remainder of its August 2015 investigation,” the school said in a statement. “The settlement allows DeVry University to continue communicating its strong student outcomes, while providing assurances regarding the extent of its graduate employment data.”
While Thursday’s settlement resolves the issue of DeVry’s job placement claims, it “does not prohibit the Department from imposing future enforcement actions against DeVry in the event of additional findings,” ED said in a statement.
For instance, the Federal Trade Commission (FTC) is currently suing DeVry on allegations that its advertisements deceived customers about job placement rates and falsely claimed that its bachelor’s degree graduates would earn more than their counterparts from other colleges or universities. ED is “working closely” with FTC on the lawsuit and will continue to conduct its own investigations of the institution.
Publication Date: 10/14/2016
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