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Deutsche Bank On Department Of Education Mulling Changes In 90/10 Rule

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In a note out Thursday, Deutsche Bank analyst Paul Ginocchio commented on the potential impact of the changes in the 90/10 rule. The current 90/10 rule limits the percent of for-profit school revenues that come from Federal student aid to 90 percent.

Two changes that the Department of Education is considering are:

  • Include tuition aid and GI Bill fund as Federal student aid
  • Move from 90/10 to 85/15 rule, with Federal aid capped at 85 percent

Ginocchio feels that Strayer Education (NASDAQ: STRA) would be most at risk, with Apollo Education (NASDAQ: APOL) or Bridgeport Education (NYSE: BPI) less affected under any guideline changes. He goes on to say he believes the near term risk of any changes is somewhat low.

  • Shares of STRA are trading down 0.61 percent at $59.82
  • Shares of APOL are higher by 2.2 percent at $26.26
  • Shares of BPI are unchanged at $11.20

Latest Ratings for STRA

DateFirmActionFromTo
Sep 2020Truist SecuritiesInitiates Coverage OnHold
Apr 2020BMO CapitalMaintainsOutperform
Jun 2019BMO CapitalMaintainsOutperform

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Posted-In: Deutsche Bank Paul GinocchioAnalyst Color Analyst Ratings

Latest Ratings

StockFirmActionPT
LADCraig-HallumMaintains300.0
ZGTruist SecuritiesMaintains115.0
DDOGMizuhoMaintains116.0
DISMoffettNathansonMaintains136.0
AMAGPiper SandlerUpgrades
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