Settlement waives more than $850000 in Idaho student debts

Arizona Attorney General Mark Brnovich announced a multimillion-dollar settlement with a for-profit university operator

EXPAND Arizona Attorney General Mark Brnovich announced a multimillion-dollar settlement with a for-profit university operator. Gage Skidmore Flickr

CEC has also agreed to pay $5 million to the states and New Hampshire will receive $50,000.

Career Education Corporation (CEC) says they are going to reform their recruiting and enrollment practices.

As part of a settlement filed by 49 state attorneys general, CEC will provide over $493.7 million in debt relief to more than 179,000 students nationally.

Career Education Corporation now offers primarily online courses through American InterContinental University and Colorado Technical University.

A spokesperson for Stein says numerous students affected here attended CEC schools in other states.

Todd Nelson, chief executive officer, said in a statement, "We have remained steadfast in our belief that we can work with the attorneys general to demonstrate the quality of our institutions and our commitment to students". The company denied wrongdoing and the allegations against it, which included that it misled students about costs of attending, job placement rates, program offerings and credit transferability. CEC has also agreed to independent monitoring and will record all online chats and phone calls with prospective students to ensure compliance.

Nationally, about 180,000 students will benefit from the settlement.

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AG Healey's Office has been at the forefront of efforts to secure relief for defrauded students. CEC will notify all eligible students of their debt relief within 60 days. Over the last two years, Education Secretary Betsy DeVos has sought to loosen regulation and reverse policies created under the previous administration. On October 16, a federal judge rejected a challenge to the Borrower Defense Rule, ordering its immediate implementation for students nationwide.

"As a result of this settlement, people that have outstanding student debt that was obtained through these specific universities will have that debt removed or relieved".

CT has brokered an estimated $493.7 million settlement with an IL for-profit educator that will spare about 180,000 students - more than 1,400 of them here - from allegedly predatory debts incurred when they enrolled in that educator's national network of trade/professional schools, authorities say.

Assistant Attorney General Craig Rader handled the case for Washington. And in October 2017, AG Healey sued to protect the Gainful Employment Rule, a federal regulation created to protect students and taxpayers from predatory for-profit schools.

David Carl, spokesman for the Office of the Attorney General, said that because of the unfair and deceptive practices, students enrolled in CEC schools who "would not have otherwise enrolled, could not obtain professional licensure, and were saddled with substantial debts that they could not repay nor discharge".

Handling this case for MA are Assistant Attorneys General Tim Hoitink and Jennifer Snow of the AG's Insurance and Financial Services Division.

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