Government to clear loans for defrauded for-profit students

The New York Times 19 February 2022

The United States Education Department will cancel federal student loans for at least 1,800 students who attended DeVry University, once one of the nation’s largest for-profit college chains, because it fraudulently lured in applicants for years with vastly inflated claims about their career prospects, writes Stacy Cowley for The New York Times.

While the department has stepped up its discharges of debts for students who were victimised by their schools, the decision announced on Wednesday 16 February is its first approval of fraud claims involving a school that is still operating. The claims approved on Wednesday are just the start, officials said. They want other students who attended DeVry during the time it was making its false promises to apply for relief.

Between 2008 and 2015, department officials said, DeVry advertised that 90% of its graduates found work in their field of study within six months. In reality, only 58% did. School officials knew of the discrepancy and ignored complaints about it from alumni, department officials said.
Full report on The New York Times site

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