The sector selloff that week was the latest blow to education stocks after the Obama administration announced June 16 that it would seek regulations aimed at stanching
Stocks in the for-profit education sector had a rough 2010.
As education companies face stricter rules, many have been adjusting their operating practices, limiting enrollment to more qualified students and those more likely to be able to repay loans.
"Things seem to be decelerating for them faster than expected," said Sterne Agee & Leach analyst Arvind Bhatia. The analyst also said macroeconomic trends have driven the decline in student starts.
-- Written by Miriam Marcus Reimer in New York.
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