Mar. 14, 2014, 4:33 AM
- The White House has proposed rules that could cut federal funding to higher-education training programs if the cohort default rate among graduates for their student loans exceeds 30% for three years in a row.
- Programs could also lose out if annual related debt payments surpass 20% of their discretionary income or 8% of their total income.
- The proposed regulations are tougher than similar rules that were struck down in court in 2011.
- The for-profit sector is unsurprisingly not happy with the rules.
- Related tickers: APOL, CECO, COCO, DV, STRA, ESI, LOPE, APEI, EDMC, LINC.
Feb. 27, 2014, 1:47 PM
- "ITT Educational Services (ESI -2.2%) believes that the CFPB's complaint should never have been filed. The complaint overwhelmingly focuses on issues that are unrelated to consumer finance, and attempts to cast a negative light on aspects of ITT Tech's activities that are extensively regulated by other government agencies."
- The core of the CFPB's claims concern just six months of loans, but the bureau knows, says ITT, independent parties provided those loans and the programs ended years ago. "Significantly, ITT Tech did not make any money, in interest or fees, from those third-party programs, which were designed to help students during the recent economic downturn."
- "Much of the complaint relies on 'mystery shoppers,' a program that ITT Tech itself voluntarily uses to make sure its policies are being followed by its employees, and to help ensure that errors in implementation are caught and corrected."
- "The complaint is an aggressive attempt by the Bureau, recently created by the Dodd-Frank Act, to extend its jurisdiction into matters well beyond consumer finance. It is unjustified as a matter of law and mistaken as a matter of fact."
- That's the point, says Herb Greenberg. "It creates a roadmap ... other for profits should shudder."
- Press release
- Previous coverage of CFPB suit
- Other sector names: APOL, CECO, COCO, DV, STRA, LOPE, APEI, EDMC, LINC
Feb. 6, 2014, 8:21 AM
Feb. 5, 2014, 8:03 AM
- Corinithian Colleges (COCO) reports new student enrollment during FQ2 fell 14.4% Y/Y to 19,760.
- Total students enrolled at the end of the quarter was 77,854 vs. 87,250 a year ago.
- Operating margin fell 60 bps to 3.8%.
- The company provided an update on investigations by the Department of Education and state AGs in which it maintained its actions were lawful.
- COCO +2.8% premarket
Feb. 5, 2014, 7:49 AM| Comment!
Feb. 5, 2014, 12:05 AM
Feb. 4, 2014, 5:30 PM
Jan. 29, 2014, 4:04 AM
- Some for-profit colleges appear to be facing a new set of investigations, with a number of them receiving requests for information from a network of at least 12 attorneys general.
- Since Friday, Education Management (EDMC), Corinthian Colleges (COCO), ITT Educational Services (ESI) and Career Education (CECO) have said they have been contacted about providing data.
- The AG's want information about about student recruitment, job placement statistics, graduation and professional licensing rates, and student loans.
- The Consumer Financial Protection Bureau has said that it plans to tackle student debt. CFPB chief Richard Cordray yesterday said the agency has received thousands of complaints and comments about the issue.
Jan. 8, 2014, 11:38 AM
- Education stocks are ripping gains up and down the sector after Apollo Education (APOL +12.7%) showed the way to profitability.
- The slice-and-dice job at the company did wonders for Q1 EPS, but didn't cut into FY14 revenue projections.
- Investors are betting other for-profit players will follow the road map.
- Gainers: CECO +7.4%, COCO +1.8%, DV +5.1%, STRA +5.5%, ESI +4.7%, LOPE +2.6%, APEI +1.8%, EDMC +3.5%, LINC +2.4%.
Nov. 24, 2013, 3:34 AM
- The Consumer Financial Protection Bureau (CFPB) said it is investigating at least two for-profit colleges, Corinthian Colleges (COCO) and ITT Educational Services (ESI), over possibly illegal practices related to "the advertising, marketing, or origination of private student loans."
- Both companies have already disclosed that they have received requests for information from the CFPB over the matter.
Nov. 22, 2013, 5:37 PM
- Aeropostale (ARO) will be removed from the S&P MidCap 400 following the Nov. 29 close, and join the S&P SmallCap 600, where it will take Corinthian Colleges' (COCO) spot. Aeropostale is being dropped to make room for J.C. Penney, which is getting thrown out of the S&P 500.
- Separately, Anika Therapeutics (ANIK) is taking Symmetricom's spot in the S&P 600 following the Nov. 26 close. Symmetricom is set to be acquired by Microsemi.
- ARO -0.6% AH. ANIK +1.6%.
Nov. 5, 2013, 8:00 AM
- Corinithian Colleges (COCO) reports total student enrollment fell 11.5% in FQ1 compared to a year ago and new student enrollment is off 8.1%.
- The company took a charge of $3.7M to account for a facility closing and severance expenses.
- Guidance for FQ2 is for revenue of $375M-$385M and EPS to fall in a range of $0.02-$0.04 vs. $0.05 consensus. (PR)
- COCO +6.6% premarket.
Nov. 5, 2013, 7:49 AM| Comment!
Nov. 5, 2013, 12:05 AM
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Nov. 4, 2013, 5:30 PM
- AFSI, AKRX, AMED, AMG, AOL, ARCC, ARCO, ASH, BCRX, BDX, BPI, CCC, CHTR, COCO, CTSH, CVS, D, DLPH, DNR, DTV, DWRE, DX, DXM, EMR, ENR, EXH, EXLP, EXPD, FE, GLDD, GTIV, HCA, HCN, HL, HPT, HSIC, HST, HW, ICE, IFF, ISIS, KORS, KWK, LBTYA, LPX, MITT, MNTA, MOS, MPEL, MPW, NNN, NTLS, NXST, ODP, OMX, OWW, OXF, OZM, PMC, PQ, RDC, REGN, REN, RHP, RIGL, RRD, RRGB, SRE, TGH, TMUS, TRGT TRP, VSI, XPO, ZBRA, ZINC, ZTS
Oct. 25, 2013, 9:22 AM
COCO vs. ETF Alternatives
Corinthian Colleges, Inc. is a post-secondary education company in the United States and Canada. It offers diploma programs and associate, bachelors and master's degrees through a single operating segment.
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