Some West Virginians to have school debts canceled in settlement with Career Education Corp.

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CHARLESTON, W.Va. (WTAP, WSAZ) - 640 West Virginia residents who attended schools operated by Career Education Corp. will have $1.45 million in student debts canceled as part of a nationwide settlement.

As part of the nationwide settlement agreement between Career Education Corporation (CEC) and 48 U.S. states and the District of Columbia, CEC is expected to forgo collecting nearly $493.7 million in debts owed by 179,529 former students of its schools in the U.S.

CEC will also pay $50,000 to the State of West Virginia for use in general consumer protection purposes.

West Virginia's Attorney General, Patrick Morrisey, said, “This settlement will provide debt relief to West Virginia students who were victims of deceptive business practices."

States involved in the settlement allege CEC misled students about issues such as enrollment costs, credit transfers in and out of other institutions, and accreditation issues for some programs.

CEC denied the allegations of the attorneys general but agreed to resolve the claims through the multistate agreement.