According to a research paper published on Texas Community Colleges, “the first community colleges in Texas were called ‘junior colleges;’” Tuttle. Dallas Baptist College was introduced as the first supported ‘junior college’ and offered a “church sponsored, two-year educational program that was similar to what was offered as standard in the first two-years of a four-year university program;” Tuttle.
In 1969, the “Texas Higher Education Coordinating Board took controlling interest in ‘junior colleges;’ and expanded their breadth in curriculum;” Texas Constitution and Statutes, Sec. 130.001. Students that attended junior colleges could reduce educational costs as the main goal of attending a ‘junior college’ was to obtain transferable credits for attendance in four-year college / university programs. By the 1970s, term of ‘junior college’ was renamed to ‘community college’ and “later ‘vocational education’ was offered as an alternative to basic college curriculum;” Texas Constitution and Statutes, Sec. 130.0011.
THE ADVENT OF EDUCATION FOR-PROFIT
In 1976, a competitor to community colleges came about which offered “an evening MBA program for ‘working adults.’” Initially known to issue educational certificates in 1973, “Keller Graduate School of Management was known as fully accredited by the North Central Association of Colleges and Schools (NCA) in 1977, becoming the first for-profit school to be accredited by the association;” Wikipedia.
In 1987, Bell & Howell Company, headquartered in Wheeling, Illinois; sold DeVry Inc. to Keller Graduate School of Management, which merged and expanded its educational programs as DeVry Inc. DeVry Inc. was bought by Bell & Howell Company in 1961 and originally named De Forest Training School by its founder Dr. Herman A. DeVry. Herman Adolf DeVry was an “inventor and aviator; known for creating the first portable motion picture projector;” Wikipedia. Lee de Forest was recognized as “‘the inventor of regeneration’ and a colleague of Dr. Herman A. DeVry;” Wikipedia. The educational institution was renamed DeVry Institute of Technology in 1968-1969.
Historically, DeVry Institute of Technology was approved to issue associate and bachelor’s degrees in electronics in 1970; having earned its accreditation through the Technology Accreditation Commission (TAC); which was part of the Accreditation Board for Engineering and Technology (ABET). It is recorded as “a ‘fully accredited’ degree granting institution in 1981;” Higher Learning Commission.
In 1991, DeVry Inc., went public, offering formerly privately held stock in an initial public offer (IPO) and by 1995, DeVry Inc. stock was officially trading on the New York Stock Exchange.
SEC FORM 8-K
DATE: 1996-08-23; PERIOD OF REPORT: 1996-08-22;
SEC ACCESSION NO. 0000730464-96-000008
• SUMMARY
DeVry Inc. (the Company) is a holding company which, through its wholly owned subsidiaries, operates a national system of degree granting, career-oriented higher-education schools and a leading international training firm. Keller Graduate School of Management, Inc. (KGSM), is one of the largest regionally accredited higher education systems in North America. Its DeVry Institutes award associate and bachelor’s degrees in electronics, computer information systems, business operations, accounting, technical management, and telecommunications management.
• REVENUE RECOGNITION TUITION
Revenue and provisions for refunds and uncollectible accounts are recognized ratably over each of the academic terms in a fiscal year. The provisions for refunds and uncollectible accounts are included in the cost of educational services in the Consolidated Statements of Income. Related reserves are $6,603,000 and $5,368,000 on June 30, 1996, and 1995, respectively. Textbook sales and other educational revenues are recognized when they occur. Revenue from training services is recognized when the training is provided.
• PERKINS PROGRAM FUND
DeVry Inc. (the Company) makes contributions to the Perkins Student Loan Fund at a rate equal to 33% of that contributed by the federal government. As previous borrowers repay their Perkins loans, their payments are used to fund new loans thus creating a permanent revolving loan fund. The Company carries its investment in such contributions at original values net of allowances for losses on loan collections of $1,547,000 and $1,275,000 on June 30, 1996, and 1995, respectively.
EDUCATIONAL COST FOR STUDENTS
DeVry Institute of Technology in Irving, Texas was the first DeVry Inc., in the State of Texas. However, the location in Irving, Texas did not offer housing and / or food as part of tuition costs. Therefore, unverifiable costs to students within Irving, Texas area would result in student loan disputes in later years.
Historically, the “cost of education in a public institution in the US for the year 1995 was between $5,965 and $7,077;” National Center for Education Statistics. This included the average cost of tuition, room, and board at a public 4-year institution, excluding books, travel, and miscellaneous. For tuition, only enrollments, costs were less. Full-time attendance in most colleges was considered at a minimum of 12 credit hours, which was calculated at a minimum of approximately four 1-hour courses worth “3 credit hours each graded on a 4-point grading scale;” Wikipedia. However, how credit hours transferred varied based on the college or university.
DeVry Institute of Technology’s undergraduate programs were based on three (3) semesters which had 16-week (4 mos.) academic periods which were Spring, Summer and Fall. The institute was known for its hands-on labs which were prerequisites for junior and senior level curriculum. Some of the most influential Technology providers in the country recognized DeVry students through internships and managed graduation year – work-study projects. Students commonly enrolled in at least one or two courses a semester that required a 1-hour lecture and a 1-hour lab for core concentration; “lecture and lab courses scored” and issued final exams independently; Cumulative GPA Calculator.
DeVry Institute of Technology also offered FastTrack 8-week courses which were scheduled between semesters (nights or weekends) and often overlapped into standard semesters hours. FastTrack courses allowed students the ability to graduate at a faster pace i.e., less than four years.
DeVry Institute of Technology’s undergraduate programs consisted of the following grading system:
Grade % Points
A 90-100 4.00
B 80-89 3.00
C 70-79 2.00
D 60-69 1.00
F Below 60 0
I Incomplete 0
• An asterisk (*) preceding the course means the course is repeated.
• A pound sign (#) preceding the course means the course is taken for enrichment of skills development. Institutional credit is earned for the grade and credit hours.
• The letter “W” is designated when a student withdraws from a course within the approved time period.
• Withdrawal from a course after the approved time period could result in an “F” or “U” as designated by the course professor. The final grade is designated as “Incomplete.”
DeVry Institute of Technology located at 4800 Regent Blvd # 200, Irving, TX 75063 permanently closed its doors, reportedly, in the year 2006. However, according to Adtalem Global Education Inc., Press Releases, the company – DeVry Inc. changed the educational institution’s name from DeVry Institute of Technology to DeVry University in 2002; Adtalem Global Education.
INVESTIGATIONS AND LAWSUITS
DeVry Inc. was acquired by Adtalem Global Education Inc., in 2008. Adtalem Global Education Inc., notably, owns Walden University; a for-profit educational institution accredited by North Central Association of Colleges and Schools (NCA) in 1990 and licensed to grant PhDs and EdDs by the Minnesota Higher Education Coordinating Board in 1982. DeVry Inc. officially announced its name change to DeVry Education Group on November 6, 2013; Adtalem Global Education.
In years, 2008 through 2015, “DeVry University – Texas, the successor to DeVry Institute of Technology would become the subject of a number of investigations and lawsuits;” Federal Student Aid. Approximately eight major lawsuits with investigations beginning in the year 2007 occurred.
The first notable case involved “Boca Raton Firefighters’ & Police Pension Fund which purchased DeVry Inc., common stock during the putative class period, October 25, 2007, through August 13, 2010, and filed suit on November 1, 2010, alleging that ‘DeVry Inc., engaged in abusive and fraudulent recruiting and financial aid lending practices;’” vLex Case Law.
The most renown lawsuit was cited as, “Federal Trade Commission vs. DeVry Education Group Inc., formerly known as DeVry Inc., a corporation; DeVry University, Inc., a corporation; and DeVry/New York Inc., a corporation.” According to the lawsuit’s case summary, “in February of 2016, DeVry formally agreed to settle a claim of $100 million as penalty for deceptive trade practices as related to student education and employment opportunity; “ Federal Trade Commission.
On January 16, 2016, DeVry Inc., reached a settlement agreement with US Department of Education that encompassed students in graduating years of 1975 to October 1980; stating that “DeVry Inc., would no longer utilize graduate employment statistics for said years and further refrain from making any future graduate employment representations without possessing graduate-specific information;” Adtalem Global Education.
A press release issued by Federal Trade Commission on July 5, 2017, states, “FTC mailed 173,000 refund checks as related to DeVry Inc.’s settlement agreement.” Further stating that “debts forgiven included the full balance owed—$30.35 million—on all private unpaid student loans that DeVry issued to undergraduates between September 2008 and September 2015;” Federal Trade Commission. The lawsuit resulted in the closure of approximately “50 campuses in the United States;” College Evaluator.
There were approximately four Texas based DeVry University closures which occurred between years 2015 and 2017:
• DeVry University, 11125 Equity Dr. Houston, TX 77041-8217 ─── CLOSED 2017
• DeVry University, 3733 West Emporium Mesquite, TX 75150-0000 ─── CLOSED 2017
• DeVry University, 5051 Westheimer Ste. 500 Houston, TX 77056-5732 ─── CLOSED 2015
• DeVry University, Dr. Horton Tower 301, Commerce Street Ste. 2000 Forth Worth, TX 76102-000 ─── CLOSED 2015
On February 16, 2022, the Federal Trade Commission issued a press release stating, “U.S. Department of Education would forgive $71.7 million in federal student loans for students deceived by the for-profit university, based in part on the FTC’s prior action;” Federal Trade Commission.
However, many DeVry Institute of Technology students that attended in years 1990 through 2002 were radically affected and victimized by the repeat lawsuits, closures, and inflated costs; the educational and financial losses included the loss of degrees, credit hours, tax refunds, wage garnishment, existing and future employment opportunities, transfer credit hours and impacted students’ financial credit scores ─ post educational years.
According to statistical data, approximately “20,000 borrower defense applications related to DeVry education have been filed since the lawsuit(s) began;” Federal Student Aid.