New Rules for Private Colleges and Career Programs – The Share Price of APOL and DV Lower while EDMC Rises

alt text

(Best Syndication News) The Obama Administration is proposing new rules to force some private schools to meet certain criteria before they are eligible for student loans. Career programs will need to meet only one of three criteria.

Gainful Employment Criteria:

Criteria #1: At least 35 percent of former students are repaying their loans. This means that students will need to be paying down their balances.

Criteria #2: Schools will also need to show that the typical graduate’s estimated annual loan payment does not exceed 30 percent of his or her discretionary income.

Criteria #3: The estimated annual loan payment of a typical graduate must not exceed 12 percent of his or her total earnings.

The Department of Education estimates that 12 percent of higher-education students are in for-profit institutions and receive 26 percent of the student loans. For-profit schools account for 46 percent of all student loan defaults (in dollars). One quarter of those for-profit schools receive 80 percent of their funding from taxpayer-financed Federal student aid.

The government estimates that five percent of the schools will lose eligibility because of the new requirements. The Obama administration wants these new requirements to take effect on July 1, 2012.

Apollo Group, Inc. (NASDAQ:APOL) was down 0.86 (-1.83%) to $46.04. Apollo owns the University of Phoenix which offers associates, bachelors, masters and doctoral degrees.

DeVry Inc. (NYSE:DV) fell 1.50 (-2.42%) to $60.36. They offer bachelor’s and master’s degree programs in technology; science, business and the arts.

Education Management Corp (NASDAQ:EDMC) was up 0.04 (0.16%) to $24.80.

By: Tom Madison
Business Reporter

Image: Secretary of Education Arne Duncan

Company name Symbol Exchange Price Change Chg % Earnings per share P/E ratio
Apollo Group, Inc. APOL NASDAQ 46.04 -0.86 -1.83% 2.63 17.54
DeVry Inc. DV NYSE 60.36 -1.5 -2.42% 4.59 13.15
Education Management EDMC NASDAQ 24.8 0.04 0.16% 1.73 14.34
ITT Educational Servic... ESI NYSE 86.19 0.52 0.61% 11.66 7.39
Career Education Corp. CECO NASDAQ 24.59 0.49 2.03% 2.3 10.67
Strayer Education, Inc. STRA NASDAQ 144.84 -0.11 -0.07% 9.85 14.7
Bridgepoint Education,... BPI NYSE 25.22 0.74 3.02% 2.56 9.84
American Public Educat... APEI NASDAQ 43.9 -0.31 -0.70% 1.61 27.22
Grand Canyon Education LOPE NASDAQ 13.8 -0.17 -1.22% 0.95 14.47
Corinthian Colleges, Inc. COCO NASDAQ 5.05 -0.01 -0.20% -0.99
National American Univ... NAUH NASDAQ 8 -0.1 -1.23% 0.61 13.08
 
Company name Market Cap Dividend Total debt to assets Return on avg assets Return on avg equity Operating margin Net profit margin
Apollo Group, Inc. 6.52B 0 16.23 15.65 45.19 20.52 10.9
DeVry Inc. 4.15B 0.2 0 18.29 26.58 21.46 14.62
Education Management 3.29B 0 34.11 3.83 9.46 14.81 6.72
ITT Educational Servic... 2.44B 0 22.23 57.94 262.89 38.43 23.44
Career Education Corp. 1.91B 0 0.13 10.66 17.95 11.6 7.84
Strayer Education, Inc. 1.77B 3.25 0 32.87 71.76 33.89 20.61
Bridgepoint Education,... 1.33B 0 0 33.29 68.44 30.34 17.89
American Public Educat... 785.05M 0 0 23.19 33.31 25.24 15.07
Grand Canyon Education 619.08M 0 10.01 19.33 39.84 19.06 11.5
Corinthian Colleges, Inc. 427.29M 0 22.62 13.34 24.15 13.65 8.28
National American Univ... 211.50M 0.06 0 26.37 72.91 18.51 11.18
Share/Save/Bookmark

      

Post to Facebook

Important: The material on Best Syndication is for informational purposes only and is not meant to be advice. Authors may have or will receive monetary compensation from the company's product/s mentioned. You should always seek professional advice before making any legal, financial or medical decisions and this website cannot substitute or replace any trained professional consultation.
Use of this site means that you agree to our TERMS OF SERVICE

Advertise On This Site
Copyright © 2006-2015 By Best Syndication All Rights Reserved