Good for the Market

The Department of Education’s delay on making a decision about how much debt students at for-profit schools can assume may benefit for-profit schools.

The government’s decision to hold off on strict for-profit rules may have caused stock prices to rise. According to a Reuters article:

Shares of most U.S. education companies like Apollo Group Inc rose on Wednesday, a day after the Education Department delayed certain regulation proposals that investors viewed as negative for the sector. “While there could be near-term relief rallies as gainful employment is pushed out, we remain cautious unless the topic is eventually removed or significantly watered down,” Robert W. Baird analyst Amy Junker said in a note to clients. Shares of Apollo group were up 2 percent at $49.27 on Nasdaq. They touched a high of $50.22 earlier in the session. Shares of DeVry Inc touched a high of $58.45 before paring some gains to trade up $1.19 at $57.53 in morning trade on the New York Stock Exchange.

The stock prices in for-profit companies also rose when deputy undersecretary of Education Robert Shireman, a noted critic of for-profit colleges, resigned last month.

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Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer