The press seems to be failing to put the two-and-two together. New enrollments at the University of Phoenix has dropped by nearly 42% . Likewise, Strayer has seen a drop of around 22%. Naturally, that means that their stocks aren't doing too well. It's with even more delight to report that other for-profits have taken a hit. These are the most notable.
Why is this happening? Well, here are two reasons: (a) Senator Harkin's hearings are taking their toll, as are (b) Robert Shireman's proposed regulations on 'gainful employment.' It's a shame that the press can't connect the dots, and can't give them any credit. But, then again, should we really expect one leg of the entertainment industry to provide us with good analysis on matters such as this? Probably not. Of course, you have your pro-business framing, but I'll save my critique of that for another day.
You know I support you, but your reference about UOPX is pretty misleading. You make it sound as if their overall enrollment has fallen drastically, when it's only the new enrollees that have decreased.
Well, I wasn't trying to be misleading. Not in the least.
The error has been corrected, Peter.
Have the rip-offs known as non-profits and public schools also experienced a drop-off in enrollments?
One NPR report on this subject:
FYI - Herb Greenberg on CNBC has done a ton of coverage on the for-profit schools and how the short sellers are wagering against them.
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