Monday, June 6, 2011

Investopedia: After Sound And Fury, For-Profit Educators Get A Break

Investors in for-profit education companies like Apollo Group (Nasdaq:APOL), Strayer (Nasdaq:STRA) and DeVry (NYSE:DV) may wonder if Washington, D.C. is more like Oz these days. There was a great deal of roaring and rumbling from the Department of Education over the past year or so about the shortfalls in the for-profit education market (high default rates, excessive tuition and debt relative to earnings prospects, etc.) and a lot of threats that the sheriffs were coming to clean up the town. 

As it turns out, all they really brought with them were water guns.


New Gainful Employments Regulations Look Soft
The Department of Education finally realized its new "gainful employment" (GE) regulations for the for-profit education industry during the first week of June. Going through the 436-page document (and yes, it was as exciting to read as it probably sounds), it is pretty clear that, for all of the sound, fury and posturing from the federal government about cracking down on these companies, very little is likely to actually change. 



To read the full article, please follow the link:
http://stocks.investopedia.com/stock-analysis/2011/After-Sound-And-Fury-For-Profit-Educators-Get-A-Break-APOL-STRA-DV-ESI-COCO0606.aspx

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