DeVry Agrees To Pay $100 Million To Settle FTC Charges Of Misleading Ads

CHICAGO (CBS) -- DeVry University and its parent company have agreed to a $100 million settlement of a Federal Trade Commission lawsuit alleging that they misled prospective students with ads that touted high employment success rates and income levels upon graduation.

Under the settlement, DeVry will pay $49.4 million in cash to be distributed to qualifying students who were harmed by the deceptive ads, as well as $50.6 million in debt relief.

The debt being forgiven includes the full balance owed—$30.35 million—on all private unpaid student loans that 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.

DeVry has 10 campus location around Chicago and Northwest Indiana.