Last year Corinthian discontinued enrolling ability-to-benefit (ATB) students, pressuring total student enrollment numbers in recent quarters. ATB students refer to those applicants who do not already possess a high school diploma. Corinthian stopped admitting those applicants in Sept., 2010, as it worked to improve its cohort default rates. Corinthian said Tuesday it will "begin enrolling ATB students again in the near future." New student enrollment plummeted 21.5% last quarter, while total enrollment was down by 8.9%.
While DeVry's total student roster grew, new undergraduate enrollment at its namesake university dropped 15.4%; at its Ross University, new student enrollment fell 8.2%. For Capella Education, new student enrollment plummeted 35.8%, and it forecast new student starts would be down 40% in the fiscal second quarter as the impact of increased competition and recent measures instituted to remain in compliance with new Department of Education regulations pressure enrollment standards. Capella said it increased marketing and promotion spending by 18% to $35.3 million as it works to retain its working adult student base, students deemed more likely to be able to pay back federal loans. Federal student aid is among the primary sources of income for for-profit education providers.
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