Nov 19, 2016 11:43 AM EST
Will Donald Trump's Presidency See The Rise Of For-Profit Colleges?
Donald Trump's victory at the 2016 U.S. Elections came as a shock to majority of Americans. There are investors, though, who see this as a fruitful period for for-profit colleges.
It was previously reported that Donald Trump and his lawyers have requested for the postponement of the hearing of his fraud case for Trump University. Apparently, he is citing the excuse of being a "political novice" and the challenges he will face during the transition to the White House.
He is facing two different federal lawsuits for Trump University. The for-profit learning enterprise is accused of deceiving students who were eager to learn his real estate secrets.
The trial was set to start in 15 days. Back in summer, Donald Trump was able to successfully request that the trial and his testimony be postponed until the election has finished. Now, as he emerged victorious, his lawyers argued that he is too busy to prepare for the trial.
According to The New York Times, for-profit colleges have had a dismal couple of years. Two of the largest for-profit institutions, ITT Technical Institute and Corinthian Colleges, were shut down by the Department of Education after investigation on their advertising and student loan malpractices.
However, after Donald Trump got elected, stock prices of the companies running for-profit colleges saw a sharp increase. Investors see this as good news.
It was revealed that shares of DeVry University rose 17 percent after the election. Apollo Education Group's shares, the owner of the University of Phoenix, increased 6 percent.
There were concerns among investors on the delay of the University of Phoenix sale. This comes after the Department of Education's intense scrutiny of the proposal. With this rise on the shares, though, it may finally push through.
This particular industry has been facing high-profile and intense investigations by the government over their recruitment and student financial aid practices. A few months ago, the U.S. Department of Education has officially stripped the authority of the largest for-profit accreditor, the Accrediting Council for Independent Colleges and Schools (ACICS).
With Donald Trump's presidency, it is expected that he will end the restrictions that decreased the number of enrollments.
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