Education stocks rise on comments from US Dept of Education
BANGALORE: Shares of most for-profit education companies rose on Tuesday, after the US Department of Education told a private TV channel it would look into Strayer Education Inc's loan repayment data after the company questioned its validity.
The loan repayment data released earlier this month by department showed that most education companies, including Strayer, were under the threat of losing federal student aid. Strayer, whose loan repayment rate was as low as 25 per cent according to the data, had requested the department for details on the calculation as it differed significantly from its own analysis that showed a repayment rate of 55 per cent.
Schools stand to lose federal aid if over 65 per cent of ex-students failed to pay the principal on federal loans, and if graduates' debt was more than 12 per cent of total income. "The Department of Education has heard Strayer's concerns (over loan repayment rates) and will conduct some additional analysis," a private TV channel reported.
Other companies such as Capella Education have also questioned the validity of the department's data. "This
The loan repayment data released earlier this month by department showed that most education companies, including Strayer, were under the threat of losing federal student aid. Strayer, whose loan repayment rate was as low as 25 per cent according to the data, had requested the department for details on the calculation as it differed significantly from its own analysis that showed a repayment rate of 55 per cent.
Schools stand to lose federal aid if over 65 per cent of ex-students failed to pay the principal on federal loans, and if graduates' debt was more than 12 per cent of total income. "The Department of Education has heard Strayer's concerns (over loan repayment rates) and will conduct some additional analysis," a private TV channel reported.
Other companies such as Capella Education have also questioned the validity of the department's data. "This