Tue, Mar. 31, 10:35 AM
- 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%).
Wed, Mar. 25, 2:23 PM
- The for-profit education sector is full of volatility today.
- Apollo Education (APOL -27%) is getting shellacked off of a disappointing FQ2 earnings report.
- 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.
Wed, Mar. 18, 11:33 AM
- Select for-profit education stocks have spiked higher despite a flurry of negative news on the sector over the last few weeks.
- The sector has an eye on Washington where a proposal by President Obama to make public junior college free is a potential threat to admission numbers.
- Advancers include Bridgepoint Education (BPI +6.2%), Apollo Education (APOL +1.7%), Corinthian Colleges (COCO +9.3%), Strayer Education (STRA +2.5%), ITT Educational Services (ESI +3.1%).
Thu, Mar. 12, 9:34 AM
- The Treasury Department and Department of Education are looking into a proposal to make it easier for student loans to be included in bankruptcies.
- Though the bankruptcy angle is only a small portion of the comprehensive Student Aid Bill of Rights aimed at the lending industry, it's expected to be one of the most controversial aspects of the proposed legislation.
- For-profit education stocks: APOL, CECO, COCO, DV, STRA, ESI, LOPE, APEI, LINC, BPI, LRN, EDU,
Fri, Jan. 9, 3:03 AM
- 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.
- Education Stocks: CECO, STRA, COCO, ESI, ITT, BPI, LINC, DV, LOPE, APEI
- APOL -0.7%; EDMC -6.1% AH
Sat, Jan. 3, 10:50 AM
- "The for-profit sector is dead," is the grim assessment from sector pioneer Michael Clifford.
- Tougher federal regulation enforced by the Obama administration and increased scrutiny by students on the value of diplomas have chipped the growth story down to a nub.
- Excess capacity in the sector could lead to tuition price cuts in 2015, warn analysts, particularly for post-secondary medical and technology programs.
- On watch: DV, APOL, STRA, ESI, CPLA, BPI, EDMC, COCO, APEI, LINC, NAUH.
- Grand Canyon Education (NASDAQ:LOPE) could be the outlier in the group. The stock managed a 4.6% over the last year on a higher mix of traditional campuses.
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Sep. 19, 2014, 3:13 PM
- ITT Educational (ESI -37.2%) waits until today to disclose it received notice from the SEC on August 7 about possible enforcement action related to its student loans.
- The company must also submit a letter of credit in the amount of $79.7M by November 4, according to today's filing. That's less than the company earlier figured on, and ITT has reached an agreement with lenders to borrow $85M, down from $98M.
- Buy the dip, says Wells Fargo, noting the letter of credit disclosure is not a surprise.
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