DeVry University: Reputation, Controversies, and the For-Profit College Debate

DeVry University, established in 1931, has a long history in the for-profit education sector. While it has provided educational opportunities for many, it has also faced significant scrutiny regarding its practices and outcomes. This article delves into the reputation of DeVry University, examining the controversies it has faced, the experiences of its students, and the broader implications for the for-profit education industry.

A History of Technical Training and Expansion

Founded by Herman DeVry, the institution initially focused on providing technical training. Over time, it expanded its offerings, notably merging with the Keller Graduate School of Management. This broadened the scope of DeVry's academic programs, attracting a wider range of students seeking career-oriented education.

FTC Lawsuit and Settlement

One of the most significant blows to DeVry's reputation came in 2016 when the Federal Trade Commission (FTC) filed a lawsuit against the university. The FTC alleged that DeVry was making deceptive claims about its graduates' employment success, specifically that 90% of graduates found jobs in their field within six months of graduation.

The lawsuit resulted in a settlement exceeding $100 million. As part of the settlement, DeVry was required to provide refunds to students who were misled by the university's advertising. This action underscored the severity of the allegations and raised serious questions about the accuracy of DeVry's marketing practices. The first checks were sent in July 2017; eventually, the amount returned reached an astounding $49 million.

Student Experiences and the "DeVry Con"

The experiences of former DeVry students paint a mixed picture. Some alumni report positive outcomes, citing the convenience of online and hybrid learning formats as beneficial. However, a significant number of former students express dissatisfaction, claiming they were misled and ultimately left with substantial debt and limited career prospects.

Daniel Deegan, a plaintiff in Sweet v. Department of Education, enrolled in an online MBA program at DeVry’s Keller School of Graduate Management seeking career advancement. Enticed by inflated employment statistics, Deegan was promised a new job with a higher salary. However, he remained in the same job until he was laid off shortly after receiving his MBA and never received career services support.

Deegan eventually found a job unrelated to his MBA but struggles with student loan debt. "This debt affects everything - my willingness and ability to buy a house, get married, start a family - it puts your whole life on hold," Deegan said.

The "DeVry Con," as some have termed it, is illustrated by these firsthand accounts of students who feel they were promised a path to a better future but instead found themselves burdened with debt and unfulfilled promises.

Key Metrics and Criticisms

Critics of DeVry and other for-profit institutions often point to several key metrics to support their arguments, including:

Graduation Rates: According to College Scorecard data, DeVry University locations average a 23 percent graduation rate. This low graduation rate means that many students who enroll never complete their programs but are still weighed down by federal student loan debts.
Instructional Spending: Between August 2016 and January 2017, DeVry spent only 24 percent of its revenue on instruction, according to an estimate by the Century Foundation. This underinvestment in learning, with more resources allocated to advertising, recruiting, and profit, raises concerns about the quality of education provided.
Student Loan Debt: Research across the for-profit college sector reveals that fewer students graduate compared to public colleges, leading to crippling debt for many.

These metrics suggest that DeVry and similar institutions may prioritize profit over student outcomes, leading to a cycle of debt and disappointment for many students.

Read also: Your Guide to DeVry Admissions

Recruitment Practices and Target Audiences

Another controversial aspect of DeVry's operations involves its recruitment practices. Some accuse the university of specifically targeting low-income communities and military personnel. Comment sections online often reveal former recruiters describing their roles as "sales" jobs, complete with quotas and phone scripts.

Such practices raise ethical concerns about whether DeVry is taking advantage of vulnerable populations by enticing them with promises of career advancement that may not materialize.

Accreditation Challenges

Accreditation has also been a source of controversy for DeVry. Accreditation is a crucial process that ensures educational institutions meet certain quality standards. Challenges to DeVry's accreditation can raise concerns about the value and recognition of its degrees.

Borrower Defense to Repayment

The Borrower Defense to Repayment (BDR) program is a federal policy that allows students to seek loan forgiveness if their schools misled them or violated state laws. It gained prominence as students at institutions like DeVry faced mounting debt due to Deceptive Practices. BDR provides a pathway for Affected Borrowers To Seek Relief and hold institutions accountable.

If a school misrepresented itself, leaving students burdened with significant debt, the Borrower Defense to Repayment program offers a pathway to justice. By filing a Borrower Defense application, affected students can seek financial relief and ensure institutions are held accountable.

Read also: DeVry Tuition and Aid

The Broader Debate: For-Profit Education

The controversies surrounding DeVry are part of a broader debate about the role and value of for-profit education. Critics argue that for-profit colleges are more focused on generating revenue than providing quality education, leading to high tuition costs, low graduation rates, and poor job prospects for graduates.

Studies have indicated that a significant portion of for-profit graduates earn less than people who never finished high school, raising questions about the return on investment in for-profit education.

Alternatives to For-Profit Colleges

For those seeking higher education, especially vocational training, several alternatives to for-profit colleges may offer a more secure path to career success. Regionally accredited post-secondary schools are often a safer bet, as they are subject to stricter oversight and tend to have better student outcomes. State universities and colleges are generally more affordable and offer a wider range of programs. Unless a school’s reputation is impeccable, such as that of an Ivy League school, it’s usually better (and economically safer) to choose a state university or college.

Additional Examples of For-Profit College Issues

Other for-profit colleges have faced similar allegations of deceptive practices and poor student outcomes.

University of Phoenix: In 2020, the University of Phoenix paid $191 million in fines and settlements after the FTC exposed the company for falsely claiming that it had special relationships with top companies and would provide exclusive job opportunities for University of Phoenix students.
Colorado Tech: Colorado Tech’s parent company, Perdoceo Education, agreed to cancel over $500 million of their former students’ loans after facing allegations of misleading job placement rates and cost of attendance.
Strayer University: A 2015 Brookings study found that Strayer students had over $6.7 billion in accumulated debt, with a low 15.2% average graduation rate.

tags: #devry #university #reputation #and #controversies