The U.S. Department of Veterans Affairs (VA) suspended DeVry University from participation in a voluntary Obama administration program that highlights veteran-friendly institutions.
The agency took action against the for-profit chain following the review of a lawsuit – filed by the Federal Trade Commission (FTC) in January – that alleges that DeVry misled consumers about the employment and earnings of its graduates in advertisements. The company claimed that 90 percent of its graduates seeking employment land jobs within six months of graduation. According to the lawsuit, DeVry counted graduates as working in their field when they were not, in order to boost its employment outcomes.
The for-profit chain is now under threat of losing Title IV eligibility from the U.S. Education Department if it fails to pull those advertisements and notify students of its inability to substantiate the claims.
As a result of the allegations, VA spokesman James Hutton stated that the agency will conduct compliance reviews at all DeVry campuses "to measure compliance with federal regulations." The agency also posted a warning flag on DeVry campuses listed in its online GI Bill college comparison tool.
A DeVry spokesman told The Washington Post that the company was "extremely disappointed" by the VA's actions. The company filed a motion to dismiss the FTC complaint last week and continues to vehemently deny the charges. The university has also requested a hearing on the Education Department's related sanction.
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The Washington Post
https://www.washingtonpost.com/news/grade-point/wp/2016/03/14/va-suspends-devry-university-from-a-key-veterans-program/