BOSTON — The for-profit college chain DeVry University and its parent company will pay $100 million to settle a federal lawsuit alleging the school misled students.
DeVry and the Federal Trade Commission on Thursday announced a settlement to a lawsuit the commission brought in January. The FTC alleged DeVry deceived students in its advertisements, and claimed that 90 percent of DeVry graduates landed jobs in their fields within six months of graduation.
The university will pay $49.4 million in cash to students who were harmed and forgive $50.6 million worth of debt, the FTC said. That number includes the full balance owed on private loans DeVry issued to undergraduates between September 2008 and September 2015 as well as debt students took on for tuition, books, and lab fees.
DeVry, in a statement, denied wrongdoing but said it is pleased the case is being resolved.
The university had agreed to stop making the 90 percent claim in October, as part of a different settlement with the Department of Education.
FTC Chairwoman Edith Ramirez said people shouldn’t be misled when making important decisions about their future.