Inside these posts: For-profit colleges

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For-profit colleges sue to block federal regulations

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 Ed to cut 600 jobs in latest cost reduction

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 »

Executives collect $2 billion at for-profit colleges

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 Ed settles student lawsuit, takes charge

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 »

DeVry first-quarter profit up 35%

DeVry Inc.’s fiscal first-quarter profit jumped 35% as revenue improved, helping results beat expectations, but the company warned of falling enrollment in its undergraduate programs.

DeVry and other for-profit colleges have faced scrutiny from the U.S. Department of Education and members of Congress in recent months as they capture a growing share of federal student aid dollars.

A number of schools are already changing admissions standards and recruiting practices ahead of new regulations expected from the Education Department. DeVry, which offers programs ranging from certificates in dental assisting to MBAs, said that while it is monitoring potential new regulations and may need some adjustments down the line, it is confident about its existing programs. Get the full story »

DeVry warns of slowing enrollment growth

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 »

For-profit college stocks hit on Apollo warning

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 »

Career Education sees 2011-2014 revenue slowdown

Education company Career Education forecast a significant slowdown in revenue growth from 2011 to 2014 as U.S. President Obama’s regulations for the for-profit education sector takes effect. Get the full story »

DeVry Q4 beats Street on higher enrollments

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 »

Up 23%, Career Ed 2Q earnings still fall short

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 »