Pay-For Education Getting Slammed As Fed's Goes To War With Their Business

08-16-2010 • Businessinsider.com/

The U.S. government is going to war with pay-for education companies, targeting their business models due to low repayment rates on government loans. Essentially, pay-for education companies are having individuals pay for college degrees funded by U.S. federal student loan programs. Those federal student loans account for a large part of pay-for education companies' profits. Now the U.S. government, seeing less than 36% of those loans repaid, is considering not allowing government loans for those institutions under new regulations. As a result, stocks in the pay-for education sector are sinking dramatically today. Strayer Education (STRA), down 15.42% Education Management Corp (EDMC), down 17.56% Capella Education Company (CPLA), down 13.28% ITT Educational Services (ESI), down 13.01% DeVry Inc (DV), down 9.04% And The Washington Post Company (WPO), owner of Kaplan, down 8.21%:

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Pay-For Education Getting Slammed As Fed's Goes To War With Their Business

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