Anybody have any idea what is going to happen?
9 replies (most recent on top)
I don't think Trump will change anything about the traffic accident that is about to become Chamberlain due to an egregious tuition and tons of competition in online RN BSN
Another opinion...
http://www.nytimes.com/2016/11/19/upshot/with-trump-investors-see-profits-again-in-for-profit-colleges.html?mabReward=A5&recp=0
Au contraire. Tech stocks took a beating during this rally. Tech companies usually hire tech school graduates. As we know too well, lower stock means employment cuts.
Trump doesn’t like Bezos’ Amazon for not paying taxes. Uh?!?!
Trump doesn’t like Apple for making stuff in China. Uh?!?!
Enrollment has been in a decline since the dot-com bust in 2000. Regulations and bad press were a later response to shady practices by predatory trade schools. Unfortunately, DeVry was lumped into that group, somewhat unfairly, but changes to the curriculum because it was “too hard” diminished the quality. Tech companies that used to come ONLY to DeVry gave up on our ill-prepared graduates.
So, do you want accountability for tuition cost and outcomes, or do you just want to make money any way possible?
Our downfall was led by three things: an improved economy, bad press, and a regulatory assault by the federal govt. Those last two things fed off of eachother, leading to lower enrollments. The latter will diminish greatly. We might not have to show we get students jobs in order to get title iv funds. We will have less oversight, and it will make doing business much easier. But the fact remains that we got so much bad press, our reputation is still not good and may never recover. As the regulatory attacks go down, maybe our reputation will improve somewhat. And if the economy goes in the dumps for whatever reason (like if Trump decides to start a war with Mexico), then we'll be in really good shape.
It could be very interesting if Congress cuts Title IV funds. There are Republicans (including Bill Bennett) who believe some of the bubble in higher ed (and high tuitions) are related to "generous" Title IV funding.
If he makes the changes to student loans he wants to make, the for profits are in trouble. He wants to give student loans back to the private banks, raising interest rates. In doing so, he wants the college to share in the risk of students who default on their loans. Read an article where expert says risk sharing threatens the whole industry and it's not clear if Trump will be "sympathetic to the non profits." And to top it all off, it has bipartisan support as a bill to do just that was introduced in 2015 by a democrat. He also wants to create more Trump Universities, or what he calls "non traditional" education where people can get federal money to go to Cracker Jack programs with no standards. That will increase the competition and threaten them as well.
Some of the largest gains in the market the past few days have been in private prison stocks. Could this be the reason?
https://www.youtube.com/watch?v=zzSvzTTBALg
Who really knows! Drumpf has said he wants to eliminate the Department of Education altogether, especially the Office of Civil Rights, which has been focused recently on reducing s-xual assaults on campuses. We all know his feelings on s-xual assaults. Less oversight from the DOE on everything could mean more and more fraudulent universities as competition. Don't forget his Trump U trial coming up on the 28th.
He has also said he wants to stop government involvement in student loans. What would no more FAFSAs do to DeVry? But then, he has also talked about forgiving more student loans, which is currently managed by the DOE.
I doubt if anything the tergiversator does or says will make any difference. Stocks rose today in general because they thought he's a builder of buildings, so let's buy construction company stocks.
DeVry stock is up 9%, so there's your first clue. I wish our future wasn't tied to a Trump victory but I think maybe it will be a big help.