From radio repair to a billion-dollar debt crisis: the volatile history of DeVry

Cultures · Published 10 October 2026 Swipe more like this →

In short: Founded in 1931 to teach technical skills, DeVry University evolved into a massive for-profit education empire. Yet, its expansion was shadowed by decades of government investigations, class-action lawsuits, and allegations of deceptive marketing. Today, the institution navigates a complex legacy of student debt, campus closures, and federal scrutiny.

Herman A. DeVry established the De Forest Training School in Chicago in 1931, initially focusing on vocational training for radio and projector repair. Following his death in 1941, the institution underwent several transformations, eventually gaining accreditation for associate and bachelor's degrees in electronics. By the late 20th century, the school had transitioned into a for-profit model, eventually merging with the Keller Graduate School of Management in 1987. This period of rapid growth saw the parent company, later renamed Adtalem Global Education, acquire various institutions, including medical and nursing colleges, and expand its reach into international markets like Brazil.

The university's business model has faced intense criticism regarding its outcomes and recruitment practices. Data from the National Center for Education Statistics indicates that the six-year completion rate for first-time, full-time students at the Illinois campus who started in 2013 was 28%. Financial burdens on students have been significant; a Brookings Institution report estimated a five-year loan default rate of 43%. In 2022, the federal government discharged over $71 million in student debt for 1,800 former attendees, citing deceptive enrollment tactics. Currently, more than 30,000 fraud claims remain pending against the institution.

Legal and regulatory challenges have been a constant feature of DeVry's history. In 2016, the Federal Trade Commission reached a $100 million settlement over claims that the university misled prospective students about job placement prospects and potential earnings. Despite these settlements, the institution has consistently denied wrongdoing. Following a 2018 handover to Cogswell Education, the university has continued to consolidate its physical footprint, closing dozens of campuses across the United States. While it maintains accreditation through the Higher Learning Commission, the institution remains a focal point in the broader debate surrounding the efficacy and ethics of for-profit higher education.

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