Devry University Lawsuits
In the beginning, Devry University did not appear to be doing anything wrong at all. However, once the public release of the lawsuits and the investigations into the school by the U.S. Department of Education, many people became very aware of their wrongdoings. Devry University was one of these for-profit schools in the United States, based in Illinois. The other major for-profit school, Kaplan University, was shut down several years ago because of fraud accusations.
Over the past several years, both of these schools have faced investigations by the government and the media.
Devry University, which was founded in 1972, was accused of misleading its students during the admissions process. The government claimed that the university concealed information from prospective students about the status of their loans and of the financial aid programs that would be available to them. This is a common for-profit educational institution. These schools are always trying to convince the public that their schools are legitimate.
In addition to misleading their students, the investigation at Devry University resulted in many lawsuits.
One suit against the university was brought by a former student who had been denied entrance to the school after he falsely claimed to have two years of working experience as a carpet cleaner. The false information resulted in him having to pay a financial aid fee of over one thousand dollars. Other suits brought against the school resulted in refunds being offered to former students who were pressured into making loan payments based on the debt accrued from student loans. Other suits resulted in the awarding of refunds to students who were improperly compensated. In the case of the latter, the refund awards totaled over seven hundred and fifty thousand dollars.
As a result of these and other lawsuits filed by former students, The Ohio State University created a committee to review the procedures put in place with regards to investigating and tracking down former students who may be trying to defraud the university.
At this point in time, no clear guidelines have been put in place regarding investigations and tracking down former students who may be attempting to defraud the school. Devry University has received many settlements stemming from its investigations. Many settlements resulted in the granting of refunds and forgiveness of tuition fees. Ohio State University has also received a number of settlements stemming from its investigations.
As of this writing, neither the OSU nor the school has received any formal complaints regarding their practices.
Based on information provided by the Ohio State University, it appears that they have been successful in tracking down former students who may be trying to fraudulently get out of paying their loans. However, it should also be noted that settlements involving settlements will affect a current or former student’s credit standing. If a settlement involving a loan forgiveness request is denied, a student may have to reapply for a loan. In addition to damaging a credit score, there are other serious implications of not being able to repay a debt. An example of this would be the inability to purchase a house or vehicle.
For-profit universities may face a number of problems when it comes to lawsuits regarding its for-profit colleges and its investigation and tracking of former students who may be defrauding the school.
These institutions must take a strict legal stance when it comes to investigations. If investigations uncover evidence of deception, these cases could be pursued vigorously. As this becomes more common, it is likely that for-profit colleges will have to find creative ways to deal with the problems brought about by their lawsuits.