Decliners: Apollo Education (NASDAQ:APOL) -1.5%, Career Education (NASDAQ:CECO) -7.1%, Strayer Education (NASDAQ:STRA) -1.7%, Lincoln Education (NASDAQ:LINC) -1.3%, Education Management (NASDAQ:EDMC) -4.1%, National American University Holdings (NASDAQ:NAUH) -1.8%, American Public Education (NASDAQ:APEI) -1.3%.
A group of Corinthian College (NASDAQ:COCO) students are attempting to back out of their student loan obligations after the company closed campuses to diminish the value of degrees from the institution.
The students have some support from the CFPB in their bid for debt relief, although the federal agency won't advocate for non-payment.
The development is another bright spotlight on a sector already reeling from enrollment losses.
"I just turned 22 and I have this much debt and I have nothing to show for it," summed up one Corinthian student on her plight.
On watch: Career Education (CECO -2.3%), ITT Educational Services (ESI -2.2%), Education Management (EDMC -7.3%), Strayer Education (STRA -1%), DeVry Education (DV -0.5%).
Enrollment guidance from Apollo came in below expectations.
Peers Bridgepoint Education (BPI -3.7%), DeVry Education (DV -5.5%), ITT Educational Services (ESI -4.1%), Grand Canyon Education (LOPE -3.9%), and American Public Education (APEI -1.6%) are also lower in sympathy.
National American University Holdings (NASDAQ:NAUH) is an outlier with a 3% gain, while microcap Education Management (NASDAQ:EDMC) is up a clean 20%.
Trading volume is up across the sector.
What to watch: A push by President Obama to make some forms of community college free is considered a threat to the sector.
President Obama has unveiled a proposal to make community college free for the first two years, with federal funding covering three-quarters of the cost and states that participate contributing the rest.
"We have to make sure that everybody has the opportunity to constantly train themselves for better jobs, better wages, better benefits," announced Obama.
The White House expects an estimated 9M students to participate in the program and save $3,800 a year on tuition.