Investors react to a Department of Education report that shows nearly two-thirds of the schools’ students aren’t repaying their federal loans.
Stock prices of for-profit colleges plummeted and calls for stronger government regulations mounted as investors and consumer advocate groups alike reacted Monday to an Education Department report that showed nearly two-thirds of the schools’ students weren’t repaying their federal loans.
The government data, released after the market closed Friday, focused on the 2009 loan repayment rates for more than 8,000 colleges and universities in the U.S. Such rates are used to gauge the potential effect of the department’s proposed “gainful employment” rules, which would cut off federal aid to programs in which less than 45% of students are able to repay their loans.
From the LA Times – http://www.latimes.com/business/la-fi-for-profit-colleges-20100816,0,2092662.story