Shares of for-profit colleges soar after U.S. eases rules on federal aid

[n2doc]

Bloomberg News
June 2, 2011, 3:29 p.m.
Shares of for-profit colleges surged the most in six years after the Obama administration eased rules that would cut off federal aid to schools whose students struggle the most to repay their government loans.

Under the rules published Thursday, companies including University of Phoenix owner Apollo Group Inc. won't risk losing their federal funding until 2015, three years later than under a previous draft, the Education Department said.

Shares of Phoenix-based Apollo, the largest for-profit college company, rose $4.71, or 11%, to $46.90. The Bloomberg U.S. For-Profit College Index of 13 stocks rose 12%, the most since January 2005.

Calling the proposed rules a threat to their existence, for-profit colleges spent $6.6 million last year on lobbying and generated thousands of letters to the government in protest. The final version was delayed seven months, and some provisions were deleted or altered to favor the industry, said Jarrel Price, an analyst at Height Analytics in Washington.

"This is good for certain schools, and it's a home run for certain schools," he said. "Apollo is a clear winner."


more

http://www.latimes.com/business/la-fi-for-profit-schools-20110602,0,5090060.story

Oh Happy Happy Joy Joy...

[liberal N proud]

1. One more way the rich are fleecing the middle class

Take the money for tuition, promise to help the students find a job when they graduate only to pull the rug out from under that concept as soon as they cross the stage with that diploma.

Now you are stuck working at Wal-Mart for near minimum wage with $50, 60, 70 thousand dollars in loans to pay for.

[TacticalPeek]

2. They are all in it together.

:grr: