DeVry to cut back on financial aid revenues
- The Denver Post reports on DeVry University's plans to cut revenue from federal student financial aid to 85%, saying that it wants to be an active partner in helping to reform for-profit higher education.
- DeVry is under investigation by the Federal Trade Commission for alleged false advertising in television spots touting its job placement and graduate earnings statistics.
- The announcement comes just weeks after the collapse of ITT Tech, under continuing pressure from the Department of Education on the school to front-load money in support of repaying loan debt for students who could potentially file fraud claims against the school.
The question is not if DeVry is doing enough to show good faith to the federal government, but if its too late. The school's efforts are reminiscent of ITT's efforts to reduce spending, pay the federal government, and reform its recruitment practices in the months leading up to its collapse, none of which changed its fate.
When considering this move in addition to the announcement from accreditation agencies of plans to heighten focus on graduation rates, the changing climate in for-profit higher education is clear; the industrial segment is coming to an end. And even as some institutions attempt to remake their images with investments in for-profit bootcamps, will traditional or alternative institutions be ready to receive the wave of students?