For-profit college stocks tumble on Apollo warning
NEW YORK—Investors fled for-profit college stocks on Thursday after the sector's bellwether predicted a 40-percent drop in student enrollment next quarter and withdrew its forecast for next year. The news chilled an industry facing increased government scrutiny over concerns about soaring student loan defaults.
Enrollments at for-profit schools surged during the recession. Big advertising budgets drew students trying to bolster their resumes as a hedge against high unemployment. But critics claim the schools are not helping students find better jobs and say enrollment counselors sign up many students who are unprepared for higher education. When they drop out, they are still stuck paying back their student loans.
LATEST EDUCATION NEWS WIRE UPDATES
- For-profit college stocks tumble on Apollo warning (AP, 3 p.m.)
- Crowd hurls rocks, epithets at Pa. school band (AP, 2:50 p.m.)
- RI gov candidate Chafee's campaign manager resigns(AP, 3:30 p.m.)
- Campus Crest shares flat in debut (AP, 11:40 a.m.)
- And the winner is: The Ole Miss 'Rebel Black Bear' (AP, 4 p.m.)
LATEST K-12 EDUCATION NEWS
- Union says superintendent bashed teachers (Boston Globe, 10/13/10)
- Lawsuit: Mentally ill US citizen wrongly deported (AP, 10/13/10)
- Springfield, Mass. teachers ratify new contract (AP, 10/13/10)
- Could I get a tapper with my school lunch? (AP, 10/13/10)
- Editorial Roundup: Excerpts From Recent Editorials (AP, 10/13/10)
LATEST HIGHER EDUCATION NEWS
- O'Donnell, Coons face off in feisty Senate debate (AP, 1:55 p.m.)
- Conn. GOP chairman files protest against treasurer (AP, 10/13/10)
- Dems swoop in to help Reid as ad spending spikes (AP, 10/13/10)
- Virginians save $377M from fed tax credit (AP, 10/13/10)
- Campus Crest schedules IPO for 3rd time (AP, 10/13/10)
