Apollo Education Group Inc., owner of the University of Phoenix, fell in late trading after disclosing it received a subpoena from the Education Department for certain marketing and recruitment records.
For more than a decade, Graham Holdings Co., the former Washington Post Co., relied on American students at its Kaplan colleges to fuel growth. With for-profit education under siege in the U.S., the future of the rapidly transforming company may lie abroad.
A Chilean university owned by Laureate Education Inc., a global chain with former President Bill Clinton as honorary chancellor, was stripped of its accreditation, cutting off its access to government loans for new students.
Apollo Group Inc. , the biggest education company by enrollment and operator of the University of Phoenix, withdrew its forecast for fiscal 2011 citing regulatory scrutiny and declining numbers of new students. The shares fell about 12 percent in extended trading.
For-profit colleges, bruised by years of investigations and rule-making, may face additional financial pressure from a new wave of state probes by attorneys general and the U.S. Consumer Financial Protection Bureau.
Education stocks plunged after Apollo Group Inc. , the biggest education company by enrollment and operator of the University of Phoenix, withdrew its forecast for fiscal 2011 citing regulatory scrutiny and a possible 40 percent decline in new students.
The Obama Administration is gearing up to produce tougher regulations that may reduce the amount of federal financial aid flowing to for-profit colleges, cutting the companies’ annual revenue growth by as much as a third.