Education Co. Agrees To $500M Debt Relief Over Fraud Claims

Law360 (January 4, 2019, 8:30 PM EST) -- Career Education Corp. has agreed to not collect nearly $500 million in student loan debts owed by more than 179,000 individuals across the country as part of a multistate settlement to resolve allegations the for-profit education company misled students about enrollment costs and job prospects, among other practices.

The Illinois-based CEC reached the agreement with attorneys general in 48 states and Washington, D.C., following a yearslong investigation into "unfair and deceptive practices" that allegedly left students unable to obtain professional licenses and stuck with debts they could not repay or discharge, authorities said Thursday in announcing the deal.

"CEC students in...

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