This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
By James Dennin for Kapitall.Corinthian Colleges Inc. (COCO) is trading down 20% Monday morning as of 11:30 New York Time, capping of a 93% yearly drop in what many say is a death-blow to the owner of for-profit universities.
The precipitous drop in the company's value is the result of new measures from the US Department of Education to stem student debt, which it worries is reaching crisis levels.
made the relationship between for-profit schools, which often derive as much as 70-80% of their revenues straight from federally subsidized loans, and the student debt crisis a top priority for the year.
Now it appears his administration has figured out a way to act without congressional action. In essence, the
Department demanded information that Corinthian didn't have and then began shutting off tuition dollars when the firm failed to provide them.
The information in question included data on the company's employment record for its students, among other things. The Department argues that this data must be compiled for a school to be credible.
Some analysts argue that the hardline tactics will have bearing on the entire industry.
Devry Education Group (DV), one of the largest for-profit educators by market cap, is down about 2% as of Monday morning.
Do you think the for-profit sector will play ball with the Department of Education? Use the list below to begin your analysis.
Click on the interactive chart to view data over time. 1. DeVry, Inc. (
Financials): Provides educational services worldwide. Market cap at $2.79B, most recent closing price at $43.92.
2. Apollo Group Inc. (
Financials): Provides educational programs and services at the undergraduate, master's, and doctoral levels. Market cap at $3.51B, most recent closing price at $32.02.
3. Education Management Corporation (
Financials): Provides post-secondary education in North America. Market cap at $214.2M, most recent closing price at $1.70.
4. Bridgepoint Education, Inc. (
Financials): Provides postsecondary education services. Market cap at $612.37M, most recent closing price at $13.56.
5. ITT Educational Services Inc. (
Financials): Offers postsecondary-degree programs in the U.S. that provide diplomas as well as associate's, bachelor's, and master's degrees. Market cap at $391.68M, most recent closing price at $16.76.
6. Corinthian Colleges Inc. (
Financials): Operates as a post-secondary career education company in the United States and Canada. Market cap at $29M, most recent closing price at $0.23.
7. Career Education Corp. (
Financials): Provides educational services primarily in the United States. Market cap at $332.79M, most recent closing price at $4.95.