Shares of Apollo Group (APOL) and other for-profit colleges have jumped this afternoon on a Dow Jones Newswires report suggesting the Department of Education may delay the announcement of new rules that could affect how much federal student assistance is directed their way.
Dow Jones’s Melissa Korn this afternoon writes that the Department will tomorrow disclose its timeline for declaring final rules about how schools compensate student recruiters, measures of student credits, and how to define what it means for a student to be prepared for gainful employment after graduation. The final rules had been expected November 1st, but Korn’s piece suggests there could now be a delay in the announcement.
“While we have not seen an official release from the [Dept. of Ed], we believe this may mean gainful employment regulations will not be finalized in time for the November 1 deadline,” writes BMO Capital Markets analyst Jeffrey Silber in a note this afternoon. Silber cautions this doesn’t mean the final rules will be any less onerous.
APOL stock is up 70 cents, or 1.4%, at $51.15. Shares of Corinthian Colleges (COCO) are up 49 cents, or 8%, at $6.66. Career Education (CECO) is up $1.15, or 5.5%, at $21.89.