For-Profit Schools Question Gainful Employment Data
On Tuesday, The Education Department released data on gainful employment. The data determines whether or not for-profit schools qualify for aid.
Interestingly, CNBC's Herb Greenberg reports that two of these schools have questioned the data--alleging that the The Education Department has exaggerated the numbers in their favor.
Greenberg goes on to speculate that Education Management (NASDAQ: EDMC) and Capella's (NASDAQ: CPLA) have raised the issue with the data in the hopes that they can throw the entire regulatory framework into doubt.
Shares of Education Management traded down sharply on Tuesday, while Capella's shares were little changed on the session.
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Tags: Herb Greenberg