NEW YORK, NY -- (Marketwire) -- 03/19/12 -- For profit colleges are bracing for a more challenging regulatory environment brought on by the "gainful employment" rules due out later this year. While the industry has been struggling, a number of companies have been taking new approaches to improve their bottom-line. Some schools are reducing expenses as companies try to offset declining revenues. Five Star Equities examines the outlook for companies in the Education & Training Services Industry and provides equity research on Apollo Group, Inc. (APOL) and DeVry, Inc. (DV). Access to the full company reports can be found at:
Recent data from the U.S. Department of Defense shows that for-profit colleges are getting almost one of every two military Tuition Assistance dollars. The for-profit college industry received $279.8 million of about $563 million spent last year on the program, according to analysis released by the U.S. Senate on Health, Education, Labor and Pensions. Public colleges received $163.5 million, while nonprofit private schools got $119.4 million.
"News that the DOD is paying more to for-profit colleges than public and nonprofit institutions is highly troubling," the majority staff of the committee said in the report, which cited misrepresentation of programs and tuition costs, aggressive recruiting strategies and high drop-out rates as "significant problems" in the industry.
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The news came shortly after The House voted to lift some federal restrictions on U.S. aid to students who attend for-profit colleges and universities. House members passed the bill which would cancel an Education Department requirement that college campuses receive state authorization to participate in federal student loan and aid programs.
The regulations would "stall the efforts in our country to make higher education more accessible and affordable to everyone," Virginia Foxx, a North Carolina Republican, said during a floor debate.
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