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Wall Street probably expected worse
Market laughs off new for-profit college rules
The United States Department of Education today (October 30) is coming out with stricter regulations that will hit for-profit colleges. Beginning July 1 of next year, for-profit colleges will be at risk of losing federal aid if a typical graduate's annual loan repayments are more than 8 percent of his or her earnings. For-profit students are 11 percent of the total in American schools but represent at least 44 percent of loan defaults. The for-profits generally get about 80 percent of their revenue from federal sources such as Pell grants.
The 8 percent threshold is lower than the current 12 percent level, according to Reuters. Predictably, Wall Street is rejoicing. At 10:30 a.m. Pacific Time, the stock of the largest for-profit, Apollo Group (which includes the University of Phoenix) is up 3.78 percent; DeVry Educational Group is up 1.94 percent and San Diego's Bridgepoint Education is up 1.37 percent.
Here's something you might be interested in.
Wall Street probably expected worse
Market laughs off new for-profit college rules
Wall Street probably expected worse
Market laughs off new for-profit college rules
The United States Department of Education today (October 30) is coming out with stricter regulations that will hit for-profit colleges. Beginning July 1 of next year, for-profit colleges will be at risk of losing federal aid if a typical graduate's annual loan repayments are more than 8 percent of his or her earnings. For-profit students are 11 percent of the total in American schools but represent at least 44 percent of loan defaults. The for-profits generally get about 80 percent of their revenue from federal sources such as Pell grants.
The 8 percent threshold is lower than the current 12 percent level, according to Reuters. Predictably, Wall Street is rejoicing. At 10:30 a.m. Pacific Time, the stock of the largest for-profit, Apollo Group (which includes the University of Phoenix) is up 3.78 percent; DeVry Educational Group is up 1.94 percent and San Diego's Bridgepoint Education is up 1.37 percent.
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