DeVry Voluntarily Reduces Federal Aid Threshold To 85%

DeVry Education Group Inc. said Tuesday it was voluntarily lowering the amount of revenue that its six Title IV institutions derive from federal student aid to 85% of total revenue from 90%. Title IV programs include federal aid programs such as Pell grants, federal work-study and Perkins loans, as well as Department of Veterans Affairs and military tuition assistance benefits. "This is a significant pledge that DeVry Group is voluntarily making for the long term and it underscores our commitment to finding solutions to the issues facing higher education today," said Chief Executive Lisa Wardell. Earlier this month, ITT Educational Services became the second for-profit education company to declare bankruptcy since last year, after the U.S. Department of Education said in August it would no longer allow ITT to enroll students with federal aid because the company failed to address its accreditor's concerns. DeVry's stock, which was still inactive in premarket trade, has tumbled 12% year to date, while the S&P 500 has gained 4.7%.