DeVry Education Group DV, +0.79% the operator of a chain of for-profit colleges, will forgive $30.35 million in student loans over claims the company misled prospective students about their ability to get jobs after graduation.
The loan forgiveness, which covers all unpaid student loans made through DeVry between Sept. 1, 2008 and Sept. 30, 2015, is part of a larger settlement with the Federal Trade Commission totaling $100 million. The deal doesn’t include any federal student loans made to students who attended the school during the period of the lawsuit.
The deal, which covers tens of thousands of students, according to the FTC, includes a $49.4 million payment to the FTC that the agency will distribute to students harmed by the misleading marketing. DeVry will also forgive $20.25 million owed to the school by students for items like tuition, books and lab fees. The company agreed to provide students with any transcripts or diplomas that were withheld over the unpaid bills.
The loan forgiveness will happen automatically and DeVry will notify the students eligible for relief as well as their credit bureaus. The FTC will begin sending refunds from the $49.4 million pot in 2017 and will identify students who qualify from DeVry’s records and contact them about the refund.