DeVry Settlement: $100 Million in Refunds and Debt Relief

Who qualifies

• To receive a cash refund, a student had to meet all four of the FTC's conditions: enrolled in a bachelor's or associate's degree program at DeVry University between January 1, 2008 and October 1, 2015; paid at least $5,000 with cash, loans, or military benefits; did not get debt or loan forgiveness as part of this settlement; and completed at least one class credit.
• The $5,000 threshold and the one-credit requirement are the two conditions that excluded the most people. Paying less than $5,000, or enrolling without completing any credit, meant no cash payment.
• The third condition matters and is often missed: students who received debt relief under the settlement were not also eligible for a cash refund. The two halves of the $100 million went to different groups of people.
• Debt relief was automatic. DeVry had to notify the students whose balances were cancelled, inform the credit bureaus and collection agencies of the forgiveness, and release transcripts and diplomas it had been withholding over outstanding debt.
• The private loans cancelled were the full unpaid balance on loans DeVry itself issued to undergraduates between September 2008 and September 2015 — not federal student loans, and not loans from a bank.
• Borrower defense loan forgiveness through the Department of Education is a separate process with its own eligibility, no cost to apply, and no connection to whether you received an FTC check.

The DeVry settlement — what happened, and what is still open

1. 1

   January 2016 — the FTC sues DeVry

   The FTC brought an enforcement action against DeVry University and its parent company, alleging that its advertising misled prospective students in violation of the FTC Act. The ads ran on television and radio, online, and in print.

2. 2

   The two claims at the centre of the case

   The FTC charged that DeVry claimed 90 percent of graduates actively seeking employment landed jobs in their field within six months of graduation. It further alleged DeVry claimed that graduates with bachelor's degrees had, on average, 15 percent higher incomes one year after graduation than graduates with bachelor's degrees from all other colleges or universities.

3. 3

   December 2016 — the $100 million settlement, and what it really consisted of

   DeVry agreed to pay $49.4 million in cash to be distributed to qualifying students, plus $50.6 million in debt relief. The debt half broke down as $30.35 million — the full balance owed on all private unpaid student loans DeVry issued to undergraduates between September 2008 and September 2015 — and $20.25 million in student debts for items such as tuition, books, and lab fees. The Commission vote was 3-0 and the stipulated order was filed in the U.S. District Court for the Central District of California.

4. 4

   What DeVry is now barred from doing

   The order prohibits DeVry from misrepresenting the likelihood that graduates will get a job as a result of their degree. Specifically, when DeVry advertises graduates' success in finding jobs near graduation, it may not count jobs students obtained more than six months before graduating. It is also barred from misrepresenting the compensation or compensation ranges students and graduates have received or can expect.

5. 5

   July 2017 — 173,000 checks go out

   The FTC mailed 173,000 refund checks totaling more than $49 million to former DeVry students. There was no claim form; eligibility was determined from records against the four conditions. The FTC thanked the Department of Education and the Department of Veterans Affairs for their cooperation, reflecting how many students had paid with federal loans or military benefits.

6. 6

   2019 — a second round, and why the totals differ

   The FTC sent a further round of checks. It states that the 2017 and 2019 distributions together resulted in over $48 million in refunds, while more than $49 million was mailed in 2017 alone. The difference is uncashed checks — money the FTC sent that recipients never collected. This is why later rounds exist at all.

7. 7

   February 2022 — the Department of Education forgives $71.7 million

   The Department of Education announced it would forgive $71.7 million in federal student loans for students deceived by DeVry, based in part on the FTC's prior action. This is separate money from the settlement, it covers federal loans the FTC settlement never touched, and it was granted through the borrower defense process rather than paid out of the $100 million.

8. 8

   May 2024 — checks reissued to people who never cashed one

   The FTC mailed 5,942 checks to people who had previously received a payment and did not cash it. Recipients had 90 days. This was a reissue, not a new claims round — nobody new became eligible.

9. 9

   What you can still do today

   If you attended DeVry and believe you were deceived, the live option is a borrower defense to repayment application with the U.S. Department of Education, which can discharge federal student loans. It is free to apply, and the FTC states that accepting a settlement payment does not prevent you from seeking it. For questions about a settlement check specifically, call 1-844-578-2645. Never pay anyone who offers to file a claim or a forgiveness application for you.

Frequently asked questions

Sources and official records

Every figure and date on this page was taken from the primary records below — court dockets, agency releases, and the settlement administrator's own notices. Payout averages we describe as averages are calculated from the official totals, not reported per-person estimates.

• FTC — DeVry Refunds page (the four eligibility conditions and the May 2024 reissue of 5,942 checks)
• FTC press release — the $100 million settlement, itemising $49.4M cash against $50.6M in debt relief
• FTC press release — Department of Education forgives $71.7 million in federal loans (February 2022)
• FTC press release — July 2017 distribution of 173,000 checks totaling over $49 million
• FTC case record — DeVry University, File No. 132-3278 / X160024