NAICU - Sector Snap: For-profit school shares tumble

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Sector Snap: For-profit school shares tumble

Associated Press

August 6, 2010

For-profit school shares dropped Friday as an analyst downgraded the sector, saying growth prospects were dwindling. A key lawmaker said Wednesday more legislation overseeing the for-profit sector was possible, on top of new rules already proposed that are likely to limit growth in student enrollments and profits. Several schools have lowered their forecasts in recent earnings reports and explained how their businesses are changing to accommodate proposed new rules that would stop bonuses for recruitment counselors and cut off access to federal financial aid if graduates or former students have too much trouble repaying student loans.

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