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DeVry University fooled its students, and now the university owes them $100M

DeVry University lawsuit

To get a good job and build your career students mostly goes to college and get a bachelor degree. They want to become more skilled workers that is why they read a lot of books and study hard. However, some of the companies misuse their positions and get the advantage of those students. DeVry University lawsuit is one of those cases which will be analyzed throughout this post. In 2015 Federal Court filed a complaint against the university and DeVry University lawsuit began.

Overview of the case

DeVry University lawsuit

DeVry lost its reputation after this incident. DeVry University misrepresented the prospects of their graduate students while ensuring that they will get a job and high salary after graduation. After Federal Court took the issue and complaints, DeVry University argued that almost 90 percent of their graduate students, who were trying to find a job, get the job and they are well paid right now. If it would be like that, we could only praise this organization, and there was not a need for implementing the lawsuit. However, it was not the reality.

The false claims that DeVry University argued in Federal court revealed and University could not back them up either. While investigating federal Court found out that, 90 percent students who got the job are the ones that found a well-paid workplace while still studying, and even some of them got their job before also enrolling in DeVry University study program.

Another false claim that DeVry University made is to count the number of students in that 90 percent mark who are not working in their respective fields. For instance, if one student was graduated from Business Management and now working as a bartender in the club, DeVry University also counted them as part of their program. Another falsified claim that DeVry University has made is not counting the students who are not using career management services and had not been registered in it during their academic career. One last claim that DeVry University made and very absorbed is that they claimed that the average salary of DeVry University graduate students is around 15 percent more than the average wage that any students get who are graduated from another university.

Violation of the law by DeVry University

The evidence is significant if you are making huge claims for just advertising your product; that is why DeVry University lawsuit happened because they did not have evidence to back up their arguments.  

Federal Court’s allegations made DeVry University pay an enormous amount of 100 million United States dollar for the students who suffered from their misleading program. In this case, was the false arguments that have been made by DeVry University. Those claims stated that around 90 percent of the graduate students of DeVry University would get a high paid job in a short time of period like six months. According to this program, those jobs will be in students’ respective fields.

The second false claim that is mentioned before was the argument that those graduate students of DeVry University are getting around 15 percent more salary than other university graduate students. Distribution of the debt was a critical issue in DeVry University lawsuit because many students became victims of this unethical act by DeVry University.

The federal court made sure that 49 million United States dollar should be immediately given to previous students who suffered from this act. Remaining 50 million US dollars was considered in debt forgiveness. Students who enrolled in DeVry University, between the time frame of 2008 to 2015 would get 30 million US dollars and remaining 20 million dollars will be collected for other expenses such as tuition fee, labs books, etc.  That was not the only requirement for Derby University by Federal Court.

DeVry University lawsuit

After the lawsuit, they also required to fulfill charges such as: Notifying the students who are getting debt forgiveness as well as notifying credit bureaus about this issue. They should have released the diplomas and transcripts that students of DeVry University could not get before because of outstanding tuition fee account debts and also they should accept all future requests regarding this matter. Federal court asked for a hotline that should be available for the students who wants to get more information about debt forgiveness.

There are also prohibitions that DeVry University should follow from that time. For instance, Federal court prohibited DeVry University from making false claims about the future of graduating students. Moreover, DeVry University prohibited from making claims about working students who started their job six months before the time graduating from the university. Misrepresentation of the student success by DeVry University was also prohibited according to Federal court’s settlement.

What should you learn from this and the Federal Court’s actions?

Many people think that education is the most important and most significant purchase that they will ever make it life. The companies who know this thought tries to imply the ideas into their advertisements and misuse their customers’ will. From that event, many companies understand that if they use false advertisements to attract people, they will be punished. True statements and publications standards should be applied to this field as well as others. DeVry university lawsuit made sure that if some company makes false claims and cannot back it up, they will get punishment and pay for their irresponsible actions.

Results of the case

DeVry University lawsuit

After alleging DeVry University in making false claims and making prohibitions, Federal Court made sure that DeVry University accepts its fault. DeVry University admitted that in their online blogs, TV channels, advertisements, and radio programs they mislead potential students. They urged future students about thinking twice before applying for universities because if those advertisements and claims are false, you will be a victim after all. 

Being careful, checking the organizations is always better and safe way because you are putting your money, energy in your study and do not want to remember it as a failed experiment in your life. After this lawsuit, DeVry University said that they are pleased from results of the allegations and wants to improve itself from now on in this matter. But the results for the DeVry University lawsuit were not good at all because they lost around 3 and a half percent of their revenue because of this lawsuit.

DeVry University lawsuit

After the incident, the enrollment number of students declined majorly. Of course, these results can be considered even well because it could be worse. For example, in 2018, Corinthian Colleges and ITT Technical Institute closed because of the same reason. They have misused the ethical conduct of recruiting and false advertising about prospects of future employment. To sum up, in 2014 Federal Government finalized a deal that says that if before profit colleges acquiring students, universities should give feedback about the graduation rates, the average number of students who enrolled in university and afterward got the jobs.

DeVry University Lawsuit was one of the shocking educational incidents that happened in this decade. However, its effect was very positive because from now students became more aware of the misleading advertisement and harsh results of it so they can avoid it in the future.