I worked within the community college arena during my working years.
Lots of financing came to the colleges via state and county property taxes, educational dollars from the state treasury (grants, special project funding, etcetera) and special educational tax assessments. More money came from the federal government through federal grants and other projects. It would appear as though the USA (and other western societies) will soon be entering a period of economic austerity, and any reduction of monies from the county, state or federal government will surely have an impact on all post secondary education facilities, whether private sector or public sector.
A double whammy comes in the form of federal and state financial aid programs for students. With near certainty, these aid programs will have their funding slashed or even eliminated, separating many potential students from any opportunity for a college education.
In my opinion, the markets have correctly priced the stocks of the private schools like Strayer, Apollo Group and Corinthian, taking in all of the current risk factors. If it were me, I'd take a wait and see attitude until the current government financial deficits are dealt with.
EK!!! |
