Tuesday, August 17, 2010

Payback Time In For-Profit Education

Monday was a severe bloodletting for many players in the for-profit education sector. While the U.S. federal government had made no secret of its intentions to reform its approach to the industry, there were not a lot of details previously in play. Late on Friday, August 13, though, the government released data about loan repayment rates in the industry and the data was not pretty. 

The Government Wants Its Money Back
There has been an ongoing debate as to whether or not the surge in for-profit education over the last 20 years has benefited students and society nearly as much as the operators. Specifically, critics have pointed to programs that leave graduates ill-prepared to get better jobs and program costs that exceed the likely earnings benefit of the education. Said differently, these programs rely upon government-subsidized loans for a  large percentage of their revenue, but students are often unable to repay the loans. 



To read the complete article, please click on the link:
http://stocks.investopedia.com/stock-analysis/2010/Payback-Time-In-For-Profit-Education-APOL-CECO-DV-COCO-STRA-LOPE-UTI0817.aspx

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