Weekly Wreck

Has the Department of Education's student aid enforcement unit been successfully muzzled?

With the new Trump administration, the pressure seems to be off for the for-profit education business. Julian Schmoke Jr., who in the past worked as a dean at DeVry University was appointed to head the Department of Education's student aid enforcement unit this past August.

The stocks of firms such as Adtalem Global Education Inc. [ATGE] have responded, going from around $18 during the summer of 2016 to nearly $45 today. Obviously, the political and regulatory environment are important factors in the for-profit education industry.

That being said, long-term investors should tread carefully as the industries foes continue to push back, see Reveal, "Senators want to examine military contracts with for-profit schools." Nor does John Grisham’s latest novel, "The Rooster Bar" paint a pretty picture of for-profit education - https://www.youtube.com/watch?v=zdAf_F-BmZ8.