Thread regarding DeVry Inc. layoffs

How is there possibly any interest in Devry University when it makes no money and has significant liabilities such as the FTC lawsuit and defense to repayment claims? I don't think you could sell it. Plus many DVU campuses are actually co-located with Chamberlain, which makes them even more difficult.

If you take a look, Devry's #1 shareholder can't sell down their stake fast enough. Another sale this week by IVA.

@KDaCDPC-4ibb is right about the associate degrees going away. Accounting, Health Information Technology, and Web Graphic Design associate degrees are gone. Does this mean students with those poorly received degrees will be able to request a refund from Devry? It's about time!

You can see what courses are going away if you look at the online catalog on page 2:

http://www.devry.edu/d/US_Catalog.pdf

At the end of each major description is a link to Gainful Employment that shows the success rate, like this one for ECT:

http://www.devry.edu/degree-programs/ge/electronics-and-computer-technology-consumer-info.html

@KDaCDPC-4ibb is right about the associate degrees going away. Accounting, Health Information Technology, and Web Graphic Design associate degrees are gone. I only know about it because I was referencing the new catalog to advise a WGD student today. We were both surprised to see the bright red text on the very first page telling us about this change.

I guess this answers Camden Kid's question about whether the gainful employment stuff will affect DVU. It looks like it already did.

@KDaCDPC-3ndu I can't speak for all of DEG, but the Gainful Employment act is no secret to DeVry. 3 of DeVry's associates degrees just have been phased out voluntarily, so that GE doesn't force them out next year. There has been lots of talk from mgmt to employees about this.

@KDaCDPC-4vjr, who would buy Devry University? And how much could Devry Group get for it? FYI: One of the other problems that Devry Group needs to consider is the instability in Brazil.

@KDaCDPC-1rsy, I dumped my DeVry stock a few weeks ago at a big loss but I think I acted too soon. A coworker made a great point----when DEG finally shuts down or sells off DeVry University that will drop a ton of dead weight and the stock price should shoot up. DVU is the main thing dragging down the financials so everything should look better once that is taken out of the picture. Just a guess but it makes sense.

Thanks for sharing that, Camden. That's very interesting indeed. I'm not sure if DeVry University will be affected by that or not. I find it odd that no communication has come from Home Office about this. On second thought, no I don't. They have historically been very selective about what they decide to tell us which is why I tend to go to Twitter and Yahoo Finance to find out what's going on with my own company. We'll hear about this when it serves their purposes and they find a way to spin it. I'll let you know if I hear anything.

Yes but the stock market drops over the past several years had nothing to do with DC policy it seems. It seems concerns about student debt, public school competition and the like had a greater impact.

@KDaCDPC-1hto, all the colleges received their results about "gainful employment" in October. This is what the last 10-Q stated:

"Under this framework, based on recently released draft rates, we expect that less than 10% of the 2015-2016 academic year programs across Carrington and DeVry University will fall into the failing category. In addition, approximately 10% of DeVry Group’s programs are expected to fall into the zone category, including the RUSVM’s veterinary medicine program. Institutions will be required to provide warnings to enrolled and prospective students with respect to GE programs considered under the regulations to be in jeopardy of losing Title IV eligibility. Management expects that certain programs will be able to avoid falling into the zone or failing categories through adjustments to program price, or, if appropriate and consistent with programmatic standards, the duration of programs. For programs where such adjustments are not feasible, which may include RUSVM’s veterinary medicine program, we may discontinue such programs or seek to establish relationships with third-party lenders to support student tuition and other expenses. These adjustments, or any requirement to issue warnings to enrolled and prospective students, could have a significant impact on our business, financial condition, results of operations and cash flows and result in the imposition of significant restrictions on us and our ability to operate."

https://www.sec.gov/Archives/edgar/data/730464/000114420416131026/v450984_10q.htm

Is anyone considering selling their DV stock? It is up a lot since the election which does not make too much sense given the rules have not caused our problems.

I haven't heard anything about that at all. Where did you find out about the ED letter to DeVry? Is it available to read online somewhere?

Does anyone know if gainful employment regulations are going to affect Devry? In October, the Department of Education sent DV a list of which programs hailed failed and which ones were in danger ("in the zone"). Apollo Education is having to eliminate 16% of its programs in anticipation of the gainful employment rules.