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A group of for-profit schools filed a lawsuit against the federal government Friday to stop implementation of three costly new rules.
The rules were part of a larger package of new regulations being imposed on the for-profit sector, which has been accused of churning out poorly educated students with large debts. Get the full story »
Career Education Corp. said Wednesday that it will cut its U.S. work force by 7 percent, or 600 positions, as the for-profit educator looks to reduce costs in the face of slowing enrollment growth.
The company, whose schools include Le Cordon Bleu North America and American InterContinental University, said the reductions will roll out over the next few months. Career Education will book a charge of up to $8 million in its fiscal fourth quarter on severance and related costs. Get the full story »
From Bloomberg | Top executives at the 15 U.S. publicly traded for-profit colleges, led by Apollo Group Inc. and Education Management Corp., received $2 billion during the last seven years from the proceeds of selling company stock, Securities and Exchange Commission filings show.
Career Education Corp. said Tuesday that it will pay about $40 million to settle lawsuits filed by students in one of its culinary schools.
The settlement was recorded as a pretax charge against the company’s third-quarter earnings. In the quarter ended Sept. 30, Career Education reported net income of $26.1 million, or 33 cents a diluted share. Operating income excluding the $40 million charge was $78.3 million.
In the year ago quarter, the company, which operates for-profit colleges, reported net income of $20.8 million, or 25 cents a diluted share. The year-ago quarter also included a special item for $18.8 million in compensation expense. Get the full story »
U.S. for-profit education companies DeVry Inc. and Capella Education Co. warned of slowing enrollment growth in the face of an uncertain regulatory environment.
The industry has come under fire from regulators and the Obama administration — and faces possible tougher rules — for saddling students with big debts and not fully preparing them for jobs. Get the full story »
Investors are fleeing for-profit college stocks after the sector’s bellwether predicted a 40 percent drop in new student enrollment next quarter.
Apollo Group Inc., which runs the University of Phoenix, attributes the expected decline to changing practices aimed at satisfying new government regulations. Get the full story »
For-profit education provider DeVry Inc. posted better-than-expected quarterly results, as enrollments rose at its DeVry university and online courses.
For the fourth quarter ended June 30, the company posted earnings of $71.6 million, or 99 cents a share, compared with earnings of $37 million, or 51 cents a share, a year earlier. Get the full story »
Career Education Corp.’s second-quarter profit soared as the for-profit college’s student population rose 23 percent and margins improved, though revenue fell short of analysts expectations.
College operators have benefited during the recession as out-of-work adults look to re-train, but their rapid growth has garnered the attention of the Department of Education and Congress. Get the full story »
