- For-profit education companies saw a drop in shares Monday after a report issued by Senate Democrats brought attention to high dropout rates and said the colleges put revenues above education.
- New rules put in place by the federal government resulting in stiffer enrollment guidelines for the schools were already dampening the companies’ enrollment and profitability.
- Industry leaders Apollo Group Inc. and DeVry Inc. both saw shares drop about 4 percent Monday, and DeVry previously reported that it expects a decline of about 15 to 17 percent in summer enrollment over last year.
From the article:
NEW YORK (AP) — Shares of for-profit education companies dropped Monday after Senate Democrats issued a report saying for-profit colleges put revenues above education, and charge students tuition and loan rates that could leave them in debt for years.
The staff report issued Monday by Sen. Tom Harkin, D-Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, said that while students are aggressively recruited by for-profit colleges, they drop out in high numbers without the degree or certificate they were seeking. ...