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These are all high school graduates that can not qualify to take college level courses. The colleges accept them then put them in remedial classes to try to bring them up to a minimum ability. These remedial classes do not count toward graduation, and carry no course credits that will transfer to other colleges.
Back in the day, these students would never have been accepted by a college, they would have to go to a college prep school first, then pass entrance exams to go to college. But now, politicians are enamored with the “everyone should go to college” idea.