DeVry Education Group
the operator of a chain of
for-profit colleges, will forgive $30.35 million in student loans over
claims the company misled prospective students about their ability to
get jobs after graduation.
The loan forgiveness, which covers all unpaid student loans made through DeVry between Sept. 1, 2008 and Sept. 30, 2015, is part of a larger settlement
with the Federal Trade Commission totaling $100 million. The deal
doesn’t include any federal student loans made to students who attended
the school during the period of the lawsuit.
The deal, which
covers tens of thousands of students, according to the FTC, includes a
$49.4 million payment to the FTC that the agency will distribute to
students harmed by the misleading marketing. DeVry will also forgive
$20.25 million owed to the school by students for items like tuition,
books and lab fees. The company agreed to provide students with any
transcripts or diplomas that were withheld over the unpaid bills.