John Sperling, the founder of for-profit education company Apollo Group (APOL), has been trying to exert political pressure to keep the Obama administration from reining in for-profit colleges. In a long Bloomberg article today, Dan Golden recounts Sperling’s rise, and his efforts to keep federal loans flowing to students at Apollo’s schools.
As federal regulators crack down on suspect practices at for-profit colleges shares of companies in the sector have plummeted. Apollo is down 35% on the year.
The article delves into the conflict between Sperling’s history of trying to reach low-income students and allegations that schools like Apollo’s University of Phoenix offer those students few useful skills while the company rakes in federal loan money. It also includes several choice nuggets about Sperling’s lobbying efforts:
Apollo shares were up 2% in morning trading.