American Public Education
As if the for-profit education sector needed any more headaches — after a wave of accreditation scrutiny earlier in the year — the shutdown may have thrown them out of the frying pan and into the fire.
See, with the shutdown now lasting more than a week, the number of people processing federal aid has been reduced due to furloughs, which in turn means there’s a backlog of aid applications. It won’t affect students who are already enrolled in the fall semester; they’ve all received their aid already. Not every for-profit school follows the traditional two-semester calendar though, and a few of them cater to a student base that relies heavily on this now-backlogged aid.
American Public Education (APEI) has been one of the biggest victims of the DOE’s partial shutdown. The 41,000 individual online classes scheduled to begin a few days ago were reduced by 13,000 when many military and government employees lost their tuition assistance as of October 1st.
APEI has been under plenty of selling pressure of late, but the mere whiff of a budget deal has already prodded the stock upward again. Given time for the effects of an approved budget to kick in, the stock should continue to climb as more students flock back to school, spurred by freely flowing financial aid.