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Vocational Schools Ordered to Repay Funds

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Bloomberg News

Computer Learning Centers Inc., a chain of 25 vocational schools, was ordered to give back $187 million to the U.S. Education Department for illegally paying commissions to admissions officers. The company had just $2.4 million in cash on Oct. 31. The sanction was one of the largest ever imposed by the Education Department, spokeswoman Jane Glickman said. The money was originally paid by the federal government to the school and its students in loans and other financial aid. The company was notified in a letter from the department dated Dec. 8 and must return the money within 45 days. Computer Learning said it plans to appeal the order within the 45 days allowed by federal law. If the appeal fails, the company may have to shut down, it said. The company said it has begun settlement negotiations with Education Department officials, but declined to provide details. Shares of the Manassas, Va.-based company fell 38 cents to close at 34 cents on Nasdaq.

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