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State AG: Company Inflated Grad Job Placement Rates, Will Pay Back Millions

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The state on Tuesday announced a deal with a for-profit education company that was accused of inflating the job placement rates of its graduates.

State Attorney General Eric Schneiderman says the Career Education Corporation has agreed to pay $10.25 million, mostly as restitution to its students.

An investigation by Schneiderman's office found the company -- which operates seven colleges in New York -- inflated annual job placement rates for its New York schools by as much as 20 to 30 percent.

It also showed that some programs didn't tell students they lacked proper accreditation.

One student we spoke with says she was told one of the schools was accredited when it wasn't.

"Well my debt right now is 30-grand and that's not only with these school loans but personal loans I had to take because of the internship that I had to do -- six months without no pay without no job. I had to leave," said Yvette Colon, a CEC student.

The company will pay $9.25 million toward a student restitution fund and another $1 million as a penalty.

CEC also says it has made substantial changes to how it calculates job placement rates.

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