DeVry agrees to stop using misleading ad

Associated Press

DeVry University is dropping one of its marquee advertisement claims after the federal government found there was no evidence to support it.

One of the nation’s largest for-profit college chains, DeVry has long advertised that 90 percent of its alumni since 1975 found employment in their fields of study within six months of graduation. The claim has been featured in advertisements online, in magazines and over the radio since at least 2008.

But in a settlement with the Department of Education announced Thursday, the Illinois-based chain agreed to stop using the statistic. The department began investigating the claim last year and ordered DeVry to prove it. Federal officials say the evidence that DeVry provided ultimately fell short.

“Students deserve accurate information about where to invest their time and money, and the law is simple and clear: Recruitment claims must be backed up by hard data,” Education Secretary John B. King Jr. said in a statement.

DeVry officials said they provided supporting evidence from 1980 onward, but that they didn’t have detailed enough data from 1975 to 1980. In a statement provided by DeVry spokesman Ernest Gibble, company officials said they were pleased to resolve the case “in full cooperation with the department.”

The settlement requires DeVry to provide a $68 million reserve that the department can use as a form of insurance for any liabilities caused by DeVry. For example, it could be used to help refund students if the chain suddenly shuts down. The department is also increasing its financial scrutiny of the chain.

DeVry still faces a separate lawsuit filed by the Federal Trade Commission in January alleging deceptive advertising. Along with the claim that DeVry agreed to drop, the commission is challenging a claim that DeVry graduates earn 15 percent more than alumni at other schools a year after graduation.

The Education Department said it will continue to support the commission in that case and to continue its own investigation into the chain.

DeVry University, one of several college chains owned by the DeVry Education Group, enrolled 26,000 undergraduate students this year at 60 campuses across the U.S., according to recent federal filings.