For Profit Colleges Negotiate Challenging Regulatory Environment
19 Mars 2012 - 1:20PM
Marketwired
For profit colleges are bracing for a more challenging regulatory
environment brought on by the "gainful employment" rules due out
later this year. While the industry has been struggling, a number
of companies have been taking new approaches to improve their
bottom-line. Some schools are reducing expenses as companies try to
offset declining revenues. Five Star Equities examines the outlook
for companies in the Education & Training Services Industry and
provides equity research on Corinthian Colleges, Inc. (NASDAQ:
COCO) and Career Education Corporation (NASDAQ: CECO). Access to
the full company reports can be found at:
www.fivestarequities.com/COCO
www.fivestarequities.com/CECO
Recent data from the U.S. Department of Defense shows that
for-profit colleges are getting almost one of every two military
Tuition Assistance dollars. The for-profit college industry
received $279.8 million of about $563 million spent last year on
the program, according to analysis released by the U.S. Senate on
Health, Education, Labor and Pensions. Public colleges received
$163.5 million, while nonprofit private schools got $119.4
million.
"News that the DOD is paying more to for-profit colleges than
public and nonprofit institutions is highly troubling," the
majority staff of the committee said in the report, which cited
misrepresentation of programs and tuition costs, aggressive
recruiting strategies and high drop-out rates as "significant
problems" in the industry.
Five Star Equities releases regular market updates on the
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The news came shortly after The House voted to lift some federal
restrictions on U.S. aid to students who attend for-profit colleges
and universities. House members passed the bill which would cancel
an Education Department requirement that college campuses receive
state authorization to participate in federal student loan and aid
programs.
The regulations would "stall the efforts in our country to make
higher education more accessible and affordable to everyone,"
Virginia Foxx, a North Carolina Republican, said during a floor
debate.
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