DeVry University Forgives $30 Million in Student Loans
The tens of thousands of students affected will start to receive notification from DeVry that they will be eligible for relief. DeVry will also be notifying those borrower’s credit bureaus.
DeVry Education Group, the operator of the well-known chain of for-profit colleges, is set to pay out some loan forgiveness. In total, DeVry will be paying out $30.35 million in student loan forgiveness over claims the company misled students about their ability to get jobs after finishing school.
This is all part of a larger settlement with the Federal Trade Commission totaling $100 million. DeVry as part of that settlement will be forgiving unpaid student loans made through DeVry between September 1, 2008, and September 30, 2015. The deal, however, does not include any federal student loans made to students who attended the school during the lawsuit.
DeVry is also set to pay back $20.25 million owed to the school by students for things like tuition, books, and lab fees. In addition to all the money paid and forgiven, DeVry has agreed to provide students with any transcripts or diplomas they were previously withholding over unpaid bills.
The good news for the disgruntled borrowers doesn’t stop there. The tens of thousands of students affected will start to receive notification from DeVry that they will be eligible for relief. DeVry will also be notifying those borrower’s credit bureaus, which is a big win. The FTC will begin to send out refunds in 2017 and contact the students from DeVry that qualify for the refund.
The FTC sued DeVry last year over the fact that DeVry alleged a job placement rate of 90% without any evidence. It was later uncovered that a sales associate at Macy’s and a server at Cheesecake Factory who had technical management degrees were working in a field of their study. DeVry is now required by the lawsuit to save documentation related to any claim they make on job placement.
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