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For Profit Trade Schools Won't Get Their Money

creative commons

RICHMOND, Va. (AP) - About 2,000 former students in Virginia won't have to pay $2.3 million in outstanding loans for online courses of a Pittsburgh firm that runs for-profit trade schools and colleges.

Attorney General Mark Herring announced Virginia's portion of the agreement Monday with Education Management Corporation.

The U.S. Justice Department announced a $95.5 million settlement to resolve allegations that the corporation used enrollment incentives to pay its recruiters and exaggerated its career-placement ability.

The federal government says the firm relied on deceptive recruiting tactics to sign up students it knew were unlikely to succeed or finish its programs.

Don Rush is the News Director at Delmarva Public Media. An award-winning journalist, Don reports major local issues of the day, from sea level rise, to urban development, to the changing demographics of Delmarva.