Update: Eligible DeVry students should anticipate receiving refunds this summer, according to anFTC blog postpublished May 1.
The FTC stated it “plans to mail checks before the end of the summer” to students who enrolled in DeVry University degree programs between January 2008 and October 2015, paid at least $5,000 via cash, loans, or military benefits, and completed at least one course credit.
Students who have already received loan or debt relief as part of the agreement will not be eligible for an additional refund.
“The size of each refund will depend on how much an individual paid to DeVry,” FTC representative Bridget Small noted in the post. “The refunds will not equal the entire amount people paid.”
If you attended DeVry University between 2008 and 2015, the for-profit institution might owe you money.
DeVry and its parent company settled a lawsuit brought by the Federal Trade Commission, which alleged the school misled prospective students. The FTC says the $100 million settlement will provide monetary relief to tens of thousands of affected students.
According to the FTC, DeVry’s marketing falsely asserted that 90% of students were employed in their fields within six months of graduating.
The complaint also alleged DeVry claimed its alumni earned 15% more on average one year after graduation than graduates with bachelor’s degrees from other institutions.
How the $100 Million Will Be Allocated
So, who will receive the $100 million?
A judge still must approve the settlement, but DeVry has agreed to provide $49.4 million in cash to qualifying students who were deceived by the advertisements.
In addition, DeVry will allocate $50.6 million toward forgiving student debt.
That debt relief is divided into two portions: $30.35 million will be applied to the outstanding balances on private student loans that DeVry issued to undergraduates between September 2008 and September 2015.
The remaining $20.25 million will address student debts for tuition, textbooks and lab fees, the FTC explained.
Does this settlement impact you? DeVry planned to notify potential recipients in early 2017. If the school cancels your student debt, it will inform your loan servicers and all major credit bureaus.
DeVry will also supply transcripts and diplomas to students who previously could not obtain them because of unpaid balances owed to the institution.
The FTC noted, “If you’re eligible, the refund amount will depend on how much you paid, and it may not cover the full extent of your loss.”
Besides compensating impacted students, DeVry will be required to alter its advertising practices. The settlement bars the school from making false claims about its graduates’ job placement rates and earnings.
Your Turn: Did you attend DeVry University? Do you expect to receive a refund or have your debt forgiven?
