President Obama wants the United States to have the world's highest rate of college graduates. But his administration also wants stronger rules for colleges that operate for profit.

Career colleges receive billions of dollars from taxpayers through student loans. The Education Department says some of that goes to waste and leaves students in debt for educations of little or no value.

To receive federal aid, career colleges must prepare students for what the law calls "gainful employment" in a recognized occupation. Two tests are proposed to see if they do.

Enrollment at for-profit colleges and trade schools has tripled in the last decade to about 1.8 million, or nearly 10 percent of the nation's higher education students. These schools, partly because they serve poorer students who need more support, receive almost a quarter of the federal aid. This year, federal financing for financial aid is expected to total $145 billion.

Some for-profits provide an important service for students who don't qualify academically for traditional colleges. Too many have been cited for enrolling students who have no chance of graduating and tossing them out once that flow of aid is exhausted.

Crediting "a slight tailwind from the economy" with driving increased undergraduate enrollment, Capella Education Co. officials are reporting a 32 percent jump in total enrollment to nearly 39,000 students.

That, in turn, drove 31 percent revenue growth to $105.2 million for the second quarter, compared with a year ago, for its wholly owned online subsidiary, Capella University.

Better-than-expected revenue performance -- paired with a positive earnings surprise of $14.6 million, up 54 percent, or 86 cents a share -- fueled Capella stock to close the day at $94.56. That's up $3.48, or 3.82 percent, on 446,000 shares trades, more than twice the daily average.

July 29 (Reuters) - For-profit education provider Strayer Education Inc (STRA.O) posted better- than-expected quarterly profit, helped by strong student enrolment growth, and forecast third quarter earnings above Street estimates.

The company, which offers programs in accounting, business administration, information technology and criminal justice to working adults, forecast third quarter earnings of $1.68 per share to $1.70 per share.

Analysts on average were expecting earnings of $1.56 per share, according to Thomson Reuters I/B/E/S.

For the second quarter, Strayer reported net income of $35.7 million, or $2.60 a share, compared with $27.5 million, or $2.00 a share, a year earlier.

NEW YORK (Dow Jones) -- The U.K.'s higher education system, considered by many a bastion of elitism and guardian of tradition, is rolling out the welcome mat to for-profit college operators. But despite some small investments in the country, it is unlikely many from the U.S. will come calling anytime soon as they remain focused on higher-growth areas such as Latin America.

Taking out federal student loans to help pay for a college education may soon become less risky.

The Department of Education this week proposed new rules that would require for-profit colleges and universities to keep the amount of loan debt that their students incur to a minimum and not outweigh the salaries they earn once they graduate. In effect, schools would have to make sure that students aren't taking on too much loan debt either by lowering the cost of tuition, warning students of risks associated with loans, or improving their curriculum to help students land a job post-graduation with a salary large enough to help pay down the debt.

Kevin Carey obviously got beat up a lot as a kid. He sees his power of the pen as an opportunity to fight (albeit in a cowardly and dirty manner) his childhood demons, in this case with Dr. Michael Clifford taking the beating.

How else can you explain the inner conflict that would lead you to take private conversations with an industry insider and make them public in an effort to shame your own source? If Dr. Clifford is such a disreputable man, then why rely on his insights for your reporting? Why use him as a guide through the government's most recent attack on career education? I believe the answer is simple: Mr. Carey does not see the higher education situation for what it is, or what an education elitist he truly is.

Many people say it's never too late to go back to school. Today one Duplin County man proved it.

You don't see many graduation ceremonies taking place at a hospital, but then again you don't see many 85-year-olds like William Hussey. Today, Hussey has just earned a college diploma.

"It's a great day for me," Hussey said.

In this special graduation ceremony Hussey was surrounded by family, friends and, yes, hospital staff. Hussey is recovering from his second hip replacement, the reason why this graduation was held at Pender Memorial Hospital.

Advocates for college access have long argued that the application students must file to receive federal financial aid is too complicated. But simplifying the Free Application for Federal Student Aid, or Fafsa, might not be enough to ensure access.

Less attention has been paid to the additional paperwork many students must complete to receive aid, but that burden, too, can prevent otherwise-eligible students from getting the money they need to pay for college, according to a new report from the Institute for College Access & Success. The report, which tracks students who applied for aid to attend 13 California community colleges, found that on average about a third of those applicants who appeared to be eligible for federal Pell Grants did not receive them.

Capella Education Co (CPLA.O) posted better-than-expected quarterly results, helped by a 32 percent jump in total enrollments, and said it expects 2010 revenue to be at the high end of its previous forecast range.

The company posted second-quarter earnings of $14.6 million, or 86 cents a share, compared with $9.5 million, or 56 cents a share, a year earlier.

Revenue rose 31 percent to $105.2 million.

Analysts on average had expected earnings of 79 cents a share, on revenue of $103.6 million, according to Thomson Reuters I/B/E/S.

The Minneapolis-based company, which provides online education programs, said it expects enrollment and revenue to grow by 24 to 25.5 percent in the third quarter.