Statistics show that students at for-profit colleges like DeVry are a LOT more likely to default on student loans than other college students. In fact, despite that only ten percent of all college students attend for-profit colleges, those students account for more than a third of all student loan defaults. Last year, the Department of Education released statistics that demonstrate that students at for-profit schools are the least likely to pay back any portion of their student loans. While 70% of students at public colleges paid at least $1 toward their student loans over a three year period, just 46% of for-profit college students paid anything toward their loan obligations.
What Is the Reason for This High and Disproportionate Default Rate?
The explanation is a predictable cycle that colleges like DeVry are well aware of:
- DeVry spent more than $100 million in three years to advertise on television, radio, YouTube, social media, and print to establish a belief that 90% of graduates find employment within six months and that they will make 15% higher income than non-DeVry graduates.
- Hard working, low-income individuals see these ads and are convinced to attend DeVry in order to better their situation.
- In order to afford DeVry’s tuition, these individuals are required to take out costly, high-risk student loans. DeVry is more than happy to encourage students to take out these loans since federal funds make up more than 60% of the college’s annual revenue.
- When DeVry students attempt to transfer to other colleges and discover that their credits are not accepted at other programs, or when they graduate and are unable to find employment, it becomes incredibly difficult to keep up with high student loan payments, leading to default.
The result of all of this is that many students leave the for-profit college experience in a worse position than when they started, without any real improvement in their employment or income status but now saddled with a massive, credit-destroying student loan. DeVry knows this. In 2014, the Department of Education identified DeVry as one of the five colleges that has the highest number of students that defaulted on their loans, with 9,081 students, or 19% of their students with loans going into default. Despite this, it took a FTC lawsuit and $100 million settlement for DeVry to commit to stop running misleading advertisements.
Were you a student at DeVry in the last five years? Do you feel financially trapped by your federal student loan? Did you attend DeVry to get a better job? You may qualify for damages against DeVry from the FTC lawsuit. Also, you may be entitled to additional damages from DeVry based on violations of California’s consumer protection laws. The legal team at Moss Bollinger has been fighting for consumers like you since 2008 and would like to help you. We are currently investigating claims against DeVry and can guide you through this process. Call us today at (866) 535-2994 for a free consultation or fill out an online form.