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For-Profit College Group Sued as U.S. Lays Out Wide Fraud

By TAMAR LEWIN August 8, 2011

The Department of Justice and four states on Monday filed a multibillion-dollar fraud suit against the Education Management Corporation, the nation's second-largest for-profit college company, charging that it was not eligible for the $11 billion in state and federal financial aid it had received from July 2003 through June 2011. While the civil lawsuit is one of many raising similar charges against the expanding for-profit college industry, the case is the first in which the government intervened to back whistle-blowers' claims that a company consistently violated federal law by paying recruiters based on how many students it enrolled.

DEVRY IS NEXT. The Department of Justice is currently reviewing the many complaints from students & whistle-blower employees. DeVry University & other for-profit schools educate less than 10 percent of all college students but get 25 percent of all Pell grants, he said. For-profit school students make up 44 percent of the federal student loan defaults. Part of this is due to the fact that for-profit schools' consumer base are disproportionately poor students and students of color who are the first in their families to go to college.

Too many students are paying $20,000 to $30,000 for associate's degrees but their diplomas aren't landing them jobs.

"They're no more employable than they were before and now they're deep in debt," said Durbin, the assistant Senate majority leader.

For-profit schools are fighting to keep their profits and attempting to stop new regulations that would withhold federal education loans and grants from its schools with high student debt and low student loan repayments.

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Anonymous
#518263

Business News- DeVry is going to eliminate approximately 570 positions.DeVry shares plunged on dismal fiscal Q4 preview and for-profit educator DeVry said it plans to cut its workforce, citing cost pressures and continued weakness in student enrollment.

The company is working to improve its near-term performance by aligning its costs to its enrollment levels. In April 2012, DeVry said its fiscal third-quarter earnings also slumped reporting that enrollment of new students continued to drop at its namesake university.

Google it and read what all the business news is reporting including DeVry ‘s CEO Mr. Daniel M. Hamburger about eliminating 570 positions.

The only thing prospective students have to do is read DeVry financial reports which provides plenty of info how DeVry is losing ground in maintaining their student enrollments. If you’re still willing to risk your university education to this failing company by all means ‘Go for it’ but don’t forget you will still have to pay the Piper aka Uncle Sam for those Federal Loans afterwards unless you’re rich and paying cash.

Those Federal Loans will haunt you until they’re paid since Uncle Sam doesn’t care if you received a decent education or not – job or no job.Something to think about before taking that risk with a for-profit school l like DeVry .

Anonymous
#518185

I am in the third week of my second session and yesterday I called DeVry and asked to be dropped. They are setting me up to fail, in my algebra class it clearly states on the course description that I must pass the class with an 80% although the professor will not allow me to progress to my next weeks homework unless I make an 80% on this exam and every exam which, I did not I only made a %60. So he tells me I only get "3" tries and after that it's a case by case basis to gain another attempt. Mind you I am an online student and was dealing with difficulties with the system and was actually booted out of my exam, which used one of my exam attempts.

Here in my professors own words-

"I understand what you're saying but please read the directions; I think you missed something in there. You DO need to get at least 80% on the tests too, in order to move on. It says that you can NOT pass the course if you don't get 80% on the "Unit Exam".

One more time, please understand my situation; I also have to follow the

rules. As a matter of fact, I can not change those settings and the system

will not let you proceed. Does that make sense?

What I don't understand is if this was such a strict rule to adhere to why in the world didn't he emphasize that prior to us taking the exam so we could have been more diligent when providing the answers. As it is the online scene is touch and go, sometimes the system works and sometimes it doesn't...

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Anonymous
#462594

i went to devry for a quarter.I realized within the first 3 weeks they were scam artists.

No legit school would be set up like that. They are no different than any other scam artist or telemarketer. they call 20 times a day even after you enrolled. prior to it, they will do anything to get you enrolled.

i looked into their program 12/27/11 and was enrolled and in classes 3 days later. even with the holiday delays. They convinced me they wanted me to go there and they even have a "test" set up prior to enrollment to make it feel more legit. Well about a week into class, i looked at my financial aid statement.

(p.s a quarter is 8 weeks) and it said i was receiving 6545.00 for the semester and being charged 2250.00. well basically they were dishing out 4000 dollars extra, more than i needed. ANY legit university would allow the option to decline loans that you dont need. scholarships and grants indeed covered tuition.

they make it so high so once your unenrolled due to the high loan amounts or failing their "classes" you owe way more than you should. i asked and they ignored. i called, they put me on hold. well, i informed them i hired a lawyer and also that i wanted unenrolled imediatly by the end of a 3 day period.

i did hire a lawyer, a reputable lawyer. they have not bothered me since and i am now enrolled at the university in my town of toledo, a big and very reputable university. wow, anyone going there really needs to get out of...

almost twice as much. these financial aid people do not know what they are doing whatsoever, they cant even make a decent statement. my statement changed three times, kept raising and falling and new "loans, grants and scholarship" were invited. also, fasfa declines them.

yeah, contacted someone in that department.

devry was denied 8 times to receive my REAL loans.they may indeed actually not even charge real loans, they expect you to pay back fake loans.

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Anonymous
#437546

It took me two eight week terms to realize that DeVry Chicago trolls impoverished high schools in Chicago, convinces many African American students to take big loans, and then dumps them in remedial classes even though they have autism and dyslexia.The kids fail and still owe back loan money.

I quit.The place is pathetic.

Anonymous
#430557

I am a former recruiter for DeVry, and have proof that my salary was increased when I made my goal for the number of students I was able to convince to enroll at DeVry. Along with several of my co-workers, we received pay cuts when we failed to put the set number of students in classes-the DeVry mantra. Weekly meeting were held by DeVry corporate personnel who warned us of the consequences if recruiters didn’t fill the classes any way they can – including lying about the potential employers waiting to hire DeVry graduates and even students who were enrolled. We were told to tell new applicants that DeVry graduates made no less than $45,000 within 6 months of graduation. Recruiters were given script-like scenarios to practice with other recruiters so we could respond accordingly to applicants who were undecided of signing the dotted line. Hook, line and sinker as my manager would say. It was necessary to close the deal to convince as many new students as possible to get our salary increases. One manager went as far as bringing in a cow bell he’d ring every time he received a new student’s enrollment papers. Lucky for the applicant they were being walked to the financial office while the front admission office laughed hysterically of how many *** people enrolled at DeVry-plenty to keep their own jobs.

Students with little academic qualifications were told that everyone who had interest, desire, and motivation could graduate in 3 years and have a...

It's all about cash flow. As recruiters we were trained to guilt trip and trick families into sending their kids to DeVry. We were taught how to show parents and students that they could afford DeVry by breaking the cost into smaller pieces making it look affordable to anyone. What was routinely omitted was the reality of the actual cost of a DeVry education -minus the illustriousness education promised by DeVry but fail to deliver -minus the job placement students are led to believe they’d get once they graduate. Still want to be a statistic of DeVry’s Failure and Risk your College Education to a bunch of thieves at DeVry? It’s your life but don’t ever say you weren’t warned if you read all the negative reviews from past students and employees and didn’t think twice.

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Anonymous
#369214

How does it feel that Devry University played you like a fiddle while getting rich at the expense of our education ?Time for Change – Regulate the *** out of these dishonest businesses.

Education advocates are taking this personal in Brazil telling their governments be more vigilant of American based for- profit schools.The Time is Now to Take a Stand.

Anonymous
#367290

For-profit colleges have seen enrollments plunge as they have been required to pull back on aggressive recruiting practices amid criticism related to high student-loan default rates. Having government regulations on these for-profit colleges makes it tough in this economy for greedy dishonest businesses like DeVry.

Anonymous
#367008

Biggest percentage decliners on New York Stock Exchange at the close of trading on Halloween: No Surprise there!

DeVry Inc.

fell 16.8 percent to $38.36.:grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin :grin ...

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Anonymous
#366487

It s time to spread the word! Driven by the resilience and stories of ordinary people.

Continue the ongoing communication with government agencies to regulate corrupt businesses practices.

Creating a better change for everyone in the world allowing them the freedom to have a voice in seeking justice.

There are people working overseas to make sure S.American countries like Brazil don't get scammed by for-profit colleges like DeVry. Our people are working to make sure they protect their vested interest of education rights by imposing strict regulations and guidelines on these uncontrolled businesses.

Anonymous
#365961

Voilà! In view, a humble vaudevillian veteran cast vicariously as both victim and villain by the vicissitudes of Fate."V" is in every one of us who still cherish FAIRNESS, JUSTICE and EQUALITY...Let his message live forever!"

Education should not be associated with scholasticism. There are men who have never seen the inside of a university who are superior to those and worth more to society than those who carried away the highest honors.

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