Tag Archives: CECO

PAA Research For-Profit Education Survey Suggests Enrollment Growth for the Winter Term Remained Robust, Some Slowdown Expected in 2010, and Some Schools Have Already Introduced “Self Regulation”

January 26, 2010 – 4:39 pm

We recently conducted a survey of privately-held for-profit postsecondary education institutions.  Our goal was to gain a better understanding of enrollment trends, identify which programs are resonating most with the education consumer, evaluate lead flow trends, learn more about cost-per-lead expectations in 2010, and to determine how institutions are preparing for the transition from a [...]

By PAA Research | Posted in For-profit Education, Uncategorized | Also tagged , , , , , , | Comments (0)

The Dept. of Education Fires A Shot Across the Bow of the Higher Learning Commission (HLC)

December 17, 2009 – 4:33 pm

The education stocks are trading off today following the release of a memorandum from the Department of Education’s Office of Inspector General (OIG).   You can find the memorandum here.  Effectively the OIG has asked the Department of Education to review the status of the HLC and potentially “limit, suspend, or terminate HLC’s recognition by the [...]

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A Question of Recourse – The GAO Report Might Not Have Been As Bad As Feared, but It Still Confirmed Our Short Thesis

September 22, 2009 – 8:28 am

For those of you that have followed our research since inception, you are probably intimately familiar with our concerns about the for-profit education sector.  We have been bearish on a few of the publicly traded for-profit education providers for the past few months. As a reminder, The central tenets of our investment thesis are as [...]

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The Winners and Losers from the FY07 Cohort Default Data

September 15, 2009 – 2:38 am

Yesterday, the Department of Education released student loan cohort default rate data for the 2007 fiscal year.  Overall, the national student loan cohort default rate (CDR) increased from 5.2% to 6.7%.  As we noted in our previous report on the for-profit postsecondary education sector, the FY07 cohort default data only captures students that were delinquent as of [...]

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Can the Income Based Repayment Plan Save ESI from A Tidal Wave of Student Loan Defaults?

July 5, 2009 – 1:30 pm

In our original post on ITT Educational Services, Inc., we argued that the company’s business model was structurally broken because it was no longer clear that students earned a positive return on their educational investment. After more than a decade of increasing tuition at an annual rate twice that of inflation, the affordability equation for [...]

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Some Quick Thoughts on the Credit Suisse For-profit Education Sector Downgrade and ESI’s Upcoming Earnings Release

April 21, 2009 – 6:49 pm

The leading for-profit postsecondary education providers (APOL, CECO, COCO, DV, ESI, STRA) all sold off in excess of 5% today following a series of downgrades from Credit Suisse. It appears Credit Suisse is increasingly concerned that the appointment of Bob Shireman as deputy undersecretary of Education will represent a new age of regulatory [...]

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