Reuters: Regulatory News: UPDATE 1-Career Education says accreditor issues show-cause notice

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UPDATE 1-Career Education says accreditor issues show-cause notice Jun 12th 2012, 22:20 Tue Jun 12, 2012 6:20pm EDT June 12 (Reuters) - Career Education Corp said an accrediting agency issued a show-cause notice following the education provider's discovery of improper placement determination practices at some of its colleges. The for-profit education provider said the Accrediting Commission of Career Schools and Colleges (ACCSC) voted to direct 10 Career Education institutions to show cause as to why their accreditation should not be withdrawn. In November, Career Education's chief executive resigned amid findings of improper placement practices and increased accreditation risks. Last month, the company got a relief when the Accrediting Council for Independent Colleges and Schools (ACICS) lifted a show-cause notice that it issued in November, immediately after the improper practices were first reported. Much of the material sought by ACCSC overlaps with the information provided earlier to ACICS, Career Education said in a statement. Nine of the 10 schools identified are dually accredited by ACCSC and ACICS, it said. Enrollments at for-profit colleges have taken a hit after they were forced to tighten admission standards in response to a two-year-long U.S. government crackdown on high levels of student debt. Career Education shares were down 4 percent at $5.98 in after-market trading. They closed at $6.21 on the Nasdaq on Tuesday.

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