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thats an entirely different definition of the word "college", so ya, it can get real confusing to someone who is not familiar with the US system.
It's the same way at my son's school. They have departments which are called "colleges" and others which are called "schools", and there are really no differences between these subdivisions, other than just names. So at my son's school, they have the "School of Music" which is the entire music department, and the "Darla Moore School of Business", yet they have the "College of Education" and the "College of Engineering", but in all four examples the words "college" and "school" are interchangable with no clear distinction between what makes on department a school and another a college.
That's not to be confused with an independent facility of higher education, which may be called a "college" though, even though it may offer a wide variety of degree programs in different majors, like Boston College, or Wofford College. Both Boston College and Wofford college are considered more prestigious than a lot of institutions with the name "University", such as the private Garner Webb University, or the public Winthrop University.
Colleges are just another word for residences at some universities here but Quebec has CEGEPS instead of Grade 12 which is kind of like college but you can take university prep courses. I guess you don't have nay negative connotations associated with colleges.