Dive Brief:

• In a press release Thursday, the U.S. Department of Education announced DeVry University will be eligible to receive Federal funds only under provisional certification through April 1, 2018. The department noted this provisional status could be extended five years.
• The sanctions come as part of a settlement over job-placement claims, which the department said are unsubstantiated, and include a requirement that the institution remove any references to a 90% job placement rate on its website and marketing materials.
• DeVry University must also post a five-year letter of credit for $68.4 million — approximately 10% of the institution’s federal financial aid revenue total from 2014-15.

Dive Insight:

DeVry’s settlement terms should come as no surprise to anyone who has followed the institution’s emphasis on institutional transparency around job placement outcomes and other ROI metrics for graduates. And though the terms in this settlement are not as stringent as those levied against ITT Tech which ultimately led to its closure, the message remains the same for the still-standing for-profit institutions: the entire sector will be on the ropes for the foreseeable future.