Market Share Grab for 4 for Profit Schools
BPI , UTI, LOPE, APOL
Why are they gonna take market share? The government says the other schools failed their test.
DV (-9.1%), WPO (-8.7%), STRA (-16.5%), CPLA (-18.1%), ESI (-11.8%), EDMC (-16.5%), COCO (-24.5%), CECO (-4.7%), LINC (-7.2%), and APEI (-1.2%) are all trading lower in the wake of that news. Some companies have released responses to the news:
DV said they are currently analyzing the data released on for its institutions and intends to work collaboratively with ED to gain clarity on its methodology and reach a resolution on inconsistencies in the data. Co says that in addition, they understand that ED intends to rectify an oversight with regard to the methodology to determine repayment rates for students at medical schools.
WPO disclosed, in an 8-K, that its public comments will include, among other technical concerns, its belief that the currently proposed Gainful Employment NPRM is drafted in such a manner that it disproportionately impacts schools with students from low socio-economic backgrounds.
STRA disclosed, in an 8-K, that the data and analysis released related to Strayer University are at odds with its internal analysis conducted in light of the guidance issued by the Department.
CPLA said they have reached out to the Department of Education, requested a sharing of the underlying data and methodology to understand any inconsistencies EDMC, also in an 8-K filing, said the proposed regulation would impose growth restrictions, warning requirements and employer affirmation restrictions for programs that do not meet certain minimum debt-to-income ratios and FFEL/Direct loan principal repayment rates.