For-profit college owner agrees to end $500M in student debt

A for-profit college company has agreed to clear nearly $500 million in debt incurred by former students as part of a settlement with 48 states and Washington, D.C.

The Illinois-based Career Education Corporation announced the deal Thursday but denies any wrongdoing.

State attorneys general across the U.S. began investigating the company in 2014 following allegations that it misled prospective students to get them to enroll.

The company now enrolls about 34,000 students at its two chains, Colorado Technical University and American InterContinental University.

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Attorneys general called the deal a victory, saying it will wipe out debt for 179,000 students across the U.S.

The deal was made with all states except California, which is negotiating with the company separately, and New York, which previously reached a deal with the company.

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