Troubled DeVry draws Veterans Affairs scrutiny over practices

A for-profit school run by a board that includes University of Arizona President Ann Weaver Hart is under scrutiny by the federal agency responsible for protecting military veterans.

The U.S. Department of Veterans Affairs announced Monday it suspended DeVry University’s status as a “Principles of Excellence” institution. The VA also has flagged the school on its website to warn veterans that the agency has received nearly 150 complaints about DeVry.

Hart has drawn criticism for her decision to join the board of directors of DeVry University’s parent firm DeVry Education Group. The board post pays her $70,000 a year plus $100,000 in stock on top of her $665,000 UA pay package.

Hart has said she vetted the company thoroughly before joining its board about a month ago. She said she’s confident DeVry is on solid footing despite a Federal Trade Commission lawsuit that claims the school deceived students about their career prospects. DeVry denies wrongdoing.

The VA, though, “is greatly concerned about FTC’s findings in the pending lawsuit,” the veterans agency said in a letter to DeVry.

Some of the complaints from veterans echo those in the trade commission case, the VA said. The veterans agency plans to conduct “targeted, risk-based program reviews for all DeVry campuses,” the letter said.

The Principles of Excellence program, a VA seal of approval for institutions that enroll military veterans, was established by President Obama in 2012 in response to reports that some schools were using deceptive marketing tactics to prey on former troops.

To obtain the seal of approval, schools volunteer to follow a list of best-practices such as transparency in financial disclosures . The UA and Pima Community College both participate in the program.

DeVry is suspended from the program “at least until the conclusion of the FTC lawsuit,” the VA letter said. The school is eligible to enroll student veterans despite the suspension, VA officials said.

Hart did not reply to requests for comment on the VA action against DeVry.

The requests were submitted to her through UA spokesman Chris Sigurdson who until a few days ago was passing along such queries to the president. Sigurdson now says he’s no longer handling questions about DeVry because its not part of his UA job and he redirected the requests to DeVry’s head office.

Ernest Gibble, a spokesman for Illinois-based DeVry Education Group, said the firm “is extremely disappointed by the VA’s action.

“The FTC’s allegations that the VA cites are just that — allegations — and we believe are without merit,” Gibble said in an email. “The VA should withhold judgment on these matters while we seek resolutions.”

Hart has said she intends to be a voice for quality on the DeVry Group board. She has the support of the president of the Arizona Board of Regents, although the board’s approval isn’t required .

Hart’s board service has become a sore point for some students, alumni and faculty members who say she has tarnished the UA’s reputation by her association with the troubled for-profit.

“I have yet to run into a single person on campus who thinks (Hart) is doing the right thing here or who views her DeVry connection as having any benefits to the U of A,” said Jake Harwood, a UA communications professor.

The VA’s website says the agency has received 147 complaints nationwide against DeVry University. They include complaints about tuition and fee charges; student loans; quality of education and “post-graduation job opportunities.”