NEW YORK (TheStreet) -- Shares of Strayer Education Inc. (STRA) are lower by -4.50% to $53.06 in afternoon trading on Thursday as education stocks take a hit following Corinthian Colleges' (COCO) announcement it is facing limited access to federal funds and the possibility of a severe liquidity shortage, the Wall Street Journal reports.
The for profit post-secondary education company's financial trouble has raised doubts as to whether or not it can continue as a company, the Journal added.
Federal financial aid for Corinthian Colleges has been placed under scrutiny by the U.S. Department of Education due to delays, on the part of the company, in responding to requests for information.
If the DOE does not grant the company its request for relief it will be forced to look for funding from other sources. Corinthian's past attempts to gain loans have been unsuccessful, the company told the Journal.
Shares of Corinthian Colleges are down -63.62% to 30 cents today. Other stocks affected include Career Education Corp. (CECO) down -8.61% to $4.88, DeVry Education Group Inc. (DV) lower by -1.73% to $43.10, and Education Management Corp. (EDMC) down -3.68% to $1.83.
Separately, TheStreet Ratings team rates STRAYER EDUCATION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: